The EzyEducation website uses cookies to help ensure we give you the best experience.
If you continue without changing your settings, we assume that you are happy to receive all cookies on the EzyEducation website.
Please refer to our Privacy and Cookies Statement to

find out more.

Continue

Debt Overhang

The process in which economic agents try to reduce the overall burden of debt they owe due to this debt constraining their ability to borrow in the future. This therefore prevents consumer spending amongst consumers and investment from businesses even if the new borrowing required to finance those expenditure plans is an economically beneficial investment with sustained benefits. This expalins why in economies when priavte sector becomes too high the level of savings will increase.

Forgot your password?