Virus impacts consumer credit more than restrictions – Fed paper
“Pandemic itself” was main driver of credit contraction in US, not lockdowns, paper finds
The Covid-19 pandemic itself had a greater impact on consumer credit in the US than the government’s interventions to control the spread of the virus, a paper published by the Federal Reserve finds.
Akos Horvath, Benjamin Kay and Carlo Wix study credit card data to track the impact of the pandemic from March to August 2020. They seek to separate the pandemic’s effect – both the health impact and voluntary changes in behaviour – from the effect of the government’s “non-pharmaceutical
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