—Household debt in Australia has accelerated at an astonishing rate since the early 1990s. Discussions and arguments about household debt have been heated. More recently, the financial crisis in the US and the global economic recession seem to have declared the riskiness of uncontrolled household debt and thus silenced the argument. However, questions about the reasons for and the impact of rising Australian household debt still warrant comprehensive analysis. By employing macroeconomic data and the data from Australian household accounts, this paper identifies the features of Australian household debt and analyses the causes and effects of rising Australian household debt.
—Australian household debt, housing investment, finance, impact, risk.
Xianming Meng is with University of New England, Australia (e-mail: firstname.lastname@example.org).
Cite: Xianming Meng, Mahinda Siriwardana, and Judith McNeill, "The Causes of Rising Australian Household Debt," International Journal of Trade, Economics and Finance vol.6, no.5, pp. 247-253, 2015.