We study how household concerns about their future financial situation may affect the marginal propensity to consume (MPC) during the COVID-19 pandemic. We use a representative survey of UK households to compute the MPC from a hypothetical transfer of £500. Our main finding points to a key role...

This article explores whether household debt has amplified the impact of the Covid crisis on the economy, and whether it might in future. We examine the impact of the crisis across different households, how they responded, and what implications this has had for household debt burdens so far