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Please use this identifier to cite or link to this item: http://bura.brunel.ac.uk/handle/2438/5126

Title: Household debt and foreign currency borrowing in new member states of the EU
Authors: Barrell, R
Davis, EP
Fic, T
Orazgani, A
Keywords: Transition economies
Household debt
House price bubbles
Foreign currency debt
Publication Date: 2009
Publisher: Brunel University
Citation: Economics and Finance Working Paper, Brunel University, 09-23
Abstract: In the light of rapidly rising household debt, we undertake panel estimation of determinants of debt-income ratios in new EU member states of Central and Eastern Europe and interpret the results in the light of indicators of housing bubbles, estimates of equilibrium debt ratios from Western Europe and information on foreign currency borrowing in the CEE. We conclude that there are potential risks from overindebtedness in some of these countries, while in others where debt-income ratios appear sustainable, there remain risks related to high levels of foreign currency debt, notably where there is a floating exchange rate. Important issues are raised for future economic performance as well as the structure of banking regulation.
URI: http://bura.brunel.ac.uk/handle/2438/5126
Appears in Collections:School of Social Sciences Research Papers
Economics and Finance

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