According to Mian and Sufi, what was the origin of the drop in consumer spending prior to the September 2008? Explain the resultant contagion effects, and why they render monetary policy ineffective. Why would their debt recipe of student loan payments contingent on a labour market index, and mortgage payments contingent on house prices, lead to a sharing of risk, and why is the latter appropriate?

According to Mian and Sufi, what was the origin of the drop in consumer spending prior to the September 2008? Explain the resultant contagion effects, and why they render monetary policy ineffective. Why would their debt recipe of student loan payments contingent on a labour market index, and mortgage payments contingent on house prices, lead to a sharing of risk, and why is the latter appropriate