Consumption and savings of Hungarian households. The importance of credit market

Bethlendi, A. (2009) Consumption and savings of Hungarian households. The importance of credit market. Acta Oeconomica, 59 (1). pp. 23-55. ISSN 0001-6373

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Abstract

Looking at almost forty years’ data the strong preference of consumption and housing investment to financial savings is an observable characteristic of Hungarian households’ long-term behaviour. This observation seems to be valid despite the substantial changes in the institutional system. Credit supply has played an important role in this. Households increase their consumption and housing expenditures by taking advantage of lending opportunities. The increased credit supply is coupled with a low financial savings rate. This in not unique in the European countries, however, it may lead to a riskier macroeconomic path for Hungary.

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