The Real Engine of the Business Cycle by Amir Sufi & Atif Mian - Project Syndicate

The Real Engine of the Business Cycle by Amir Sufi & Atif Mian - Project Syndicate: A valuable lesson from the Great Recession is that credit-supply expansions play a key role in subsequent recessions. When lenders make credit more available or more affordable, households respond by taking on debt, which drives up aggregate demand – that is, until the music stops.