Balance sheet recession/Definition: Difference between revisions
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A [[recession]] caused by reductions in spending | A [[recession]] caused by reductions in spending or lending when household or banks attempt to correct a sudden increase in their [[leverage]] brought about by the bursting of an [[asset price bubble]]. | ||
Revision as of 16:36, 11 August 2010
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Balance sheet recession [r]: A recession caused by reductions in spending or lending when household or banks attempt to correct a sudden increase in their leverage brought about by the bursting of an asset price bubble.