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PHOTO: Property Crash
The need for a more risk-sharing alternative to traditional mortgage debt is the key lesson to be drawn from the Great Recession.
At least that is the conclusion of Atif Mian, an economics professor at Princeton and co-author of House of Debt, who visited the Reserve Bank last week.
The book analyses the role that the build-up of household debt in the United States played in triggering what became a global financial crisis and, crucially, in deepening and prolonging the recession which followed.