Podcast: Eco Waves
Slowdowns, households, companies and banks 1/29/2019

Slower growth will raise the concern of households that unemployment will increase. Greater caution means less spending. Companies will scale back investments because they represent a long horizon commitment which moreover is irreversible. Reduced visibility means companies will be reluctant to commit for the long run. Banks will also become more cautious in extending credit, being concerned that the balance sheet quality of customer will suffer from a period of negative growth.

TRANSCRIPT // Slowdowns, households, companies and banks : January 2019

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