Recession's Decline In Consumer Consumption Due To Loss Of Wealth And Income And Not Household Debt Deleveraging

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From Federal Reserve Bank Of Boston Public Policy Brief, "U.S. Household Deleveraging: What Do the Aggregate and Household-Level Data Tell Us?" by Daniel Cooper, Senior Economist:

This policy brief analyzes the impact of household debt repayment on consumer spending during and after the Great Recession by using aggregate and household-level data. Overall, the data show little evidence that deleveraging affected household consumption. Rather, movements in consumption prior to, during, and following the Great Recession are consistent with the standard relationships implied by fluctuations in household income and net worth.