BIS paper links debt service lag to impact on real economy

bis-5
The BIS
Photo: Daniel Hinge

The lag between debt accumulation and the peak of debt service costs helps explain why debt booms have a delayed impact on the real economy and the probability of crises, according to a working paper published by the Bank for International Settlements.

In Accounting for debt service: the painful legacy of credit booms, authors Mathias Drehmann, Mikael Juselius and Anton Korinek base their results on the observation that debt service costs peak after the highest point of a credit boom – around

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@centralbanking.com or view our subscription options here: http://subscriptions.centralbanking.com/subscribe

You are currently unable to copy this content. Please contact info@centralbanking.com to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Central Banking? View our subscription options

Register for Central Banking

All fields are mandatory unless otherwise highlighted

This address will be used to create your account

You need to sign in to use this feature. If you don’t have a Central Banking account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account

.