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Type: Journal Articles Authors: Catherine Lee and Bill Robinson ISSN: Print: 0143-5671 Online: 1475-5890
Published in: Fiscal Studies, Vol. 11, No. 1, February 1990
Volume, issue, pages: Vol. 11, No.1, pp. 36-52
The growth of consumer spending in 1987 and especially in 1988 took the macro forecasters by surprise. There has been a dramatic collapse in the personal savings ratio as borrowing has surged. The borrowing has been dominated by loans for house purchase and has coincided with a major house price boom. It is tempting to conclude that we have witnessed a classic bubble in which an increase in share prices, makes owners of those assets feel wealthier and increases both the demand for and supply of further loans. Search |
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