IMF: Household Debt Leads to More Severe Recessions

11:05 AM ET Tue, 10 April 2012

Daniel Leigh, senior economist at the IMF, told CNBC, "we looked at 25 economies over the last 30 years and each time there was a recession or a housing bust, countries where there was a bigger build up in household debt had a much more painful recession, unemployment went up more, GDP fell significantly more and stayed lower for up to five years."