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ABSTRACT Through a unique and powerful analysis of the Great Recession, Atif Mian and Amir Sufi establish that the main culprit was the over-indebtedness of households, in contrast with the dominant view that the problems in the financial intermediaries and the resulting disruption of credit were at the core. Their analysis yields a set of novel empirical findings that have solid implications about the mechanisms at play leading the economy towards the catastrophe. This enables the authors to provide a theoretical framework for the researchers that strive to write models capable of generating recessions such as the latest. Furthermore, by the same virtue, they manage to provide a valuable evaluation of the policy responses in the face of the crisis. The authors conclude the book with a groundbreaking policy recommendation to avoid similar recessions in the future: replacement of debt with equity-like instruments that provide a better sharing of aggregate risk.
JEL E21, E60, G01, G18, G21
Keywords: House of debt, Financial crisis, Debt, Economic policy, Book review
ÖZ Atif Mian ve Amir Sufi, son finansal krizin özgün ve güçlü bir çözümlemesini yapmak suretiyle krizin arkasinda, baskin görüsün öne sürdügü gibi, finansal aracilik sirketlerindeki güçlükler ve bunun sonucu olusan kredi arzindaki problemlerin degil, hanehalki borçlulugundaki asiriligin yattigini tespit etmektedir. Kitaptaki analizler ekonomiyi felakete sürükleyen mekanizmalar hakkinda saglam çikarim saglayan ampirik bulgular ortaya koymaktadir. Bu sayede yazarlar son yasanan durgunluk benzeri ekonomik durgunluklari ortaya çikarabilecek modeller kurmak isteyen arastirmacilar için teorik bir altyapi önermektedirler. Ayni vesileyle, kriz karsisindaki politika tepkilerinin faydali bir degerlendirmesi de yazarlar tarafindan sunulabilmektedir. Kitap çigir açici bir politika önerisi ile sonuçlanmakta ve bu öneride, borcun bir mali araç olarak yerini, genel riskin daha iyi paylasilmasina olanak taniyan özsermaye benzeri araçlara birakmasini saglayacak sekilde düzenlemelerin yapilmasi tavsiye edilmektedir.
"HOUSE OF DEBT" ÜZERINE BIR ELESTIRI
JEL E21, E60, G01, G18, G21
Anahtar kelimeler: House of debt, Finansal krizler, Borç, Ekonomi politikasi, Kitap elestirisi
1. Introduction
The Great Recession, which lasted for 18 months, was the longest recession that the US economy experienced in the post-war era. Total output contraction from peak to trough was over 4 percent. Durable good consumption declined by a staggering 13 percent. Nevertheless, the toll the crisis took on the labor market was particularly remarkable, and in many ways...