#02 - Slowdowns, households, companies and banks

from Macro Waves · host BNP Paribas Economic Research

The psychology of a recession, Episode 2 - 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. 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.Hosted on Ausha. See ausha.co/privacy-policy for more information.

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This episode was published on February 4, 2019.

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