Interesting NBER day paper on Credit Smoothing, or the idea that people will use more/request more credit as a response to negative income shocks. The paper finds, contrary to standard economic models, people spend less instead of utilizing more credit. https://www.nber.org/papers/w26354?utm_campaign=ntwh&utm_medium=email&utm_source=ntwg3

This is important for recession response. If people don't utilize credit, even when available, the government must do more to stimulate demand. This Brookings paper outlines one option, direct payments: https://www.brookings.edu/wp-content/uploads/2019/05/ES_THP_Sahm_web_20190506.pdf

which, if you think about it for five seconds, makes total sense. but every model used to evaluate policy assumes the opposite.