IMF World Economic Outlook (WEO) “Growth Resuming, Dangers Remain”
Written by Mariusz Mówka Wednesday, 18 April 2012Chapter 3 “Dealing with Household Debt” analyzes the effects of household debt in the aftermath of housing busts and how government policies can reduce the economic costs.
Key points:
- Housing busts and recessions preceded by larger run-ups in household debt tend to be more severe and protracted. The economic weakness reflects the combination of house price declines and the debt overhang resulting from the prebust debt buildup.
- Macroeconomic policies, namely monetary easing and fiscal transfers through social safety nets, are crucial in forestalling excessive contractions in economic activity during such busts. However, macroeconomic policies have limits.
- Bold and well-designed government policies targeted at reducing the level of household debt and debt service can mitigate the negative effects of household deleveraging on economic activity, at a limited fiscal cost.
EU consultation on Bank Account
Written by Mariusz Mówka Wednesday, 21 March 2012DG Internal Market and Services and DG Health and Consumers have opened consultation on Bank Account. The consultation document is available at DG Sanco website.
The consultation focuses on 3 main problems:
- Transparency and comparability of bank account fees,
- Switching between payments account providers,
- Access to a basic payment account.
MC ECDN invites all members to take part in preparation of ECDN position document.
Additionally, here is link to ECDN’s position document on Access to a Basic Payment Account , prepared in 2010.
Consultation process ends at June 12.
Last Updated ( Wednesday, 21 March 2012 )Study on household debt advisory services in the EU
Written by Mariusz Mówka Wednesday, 21 March 2012EUROFOUND - European Foundation for the Improvement of Living and Working Conditions published the executive summary of the study “Household debt advisory services in the European Union ”.
This study focuses on debt advisory services, especially on how access to and quality of services can be improved. The study identifies successful debt counselling measures and outlines the conditions that contribute to good practice.
Full version of the report will be available at beginning of April 2012.
Last Updated ( Wednesday, 21 March 2012 )