Massive government-mandated and private-sector debt relief during the COVID-19 pandemic was well-targeted and helped mute economic distress for millions of Americans, finds a paper to be discussed at the Brookings Papers on Economic Activity (BPEA) conference on September 9.
About 60 percent of borrowers who entered debt forbearance have exited it as of May, but an important policy question looms for how to deal with any remaining forbearance overhang, particularly for mortgages, if mandated forbearance expires as scheduled at the end of September, write the authorsSusan Cherry and Amit Seru of the Stanford Graduate School of Business, Erica Jiang of the University of Southern California, Gregor Matvos of Northwestern University, and T…
Read the full article at: https://www.brookings.edu/bpea-articles/government-and-private-household-debt-relief-during-covid-19/
