The simulations take into account changes over time in individual debt levels, as well as changes in household wealth from savings and fluctuations in the value of financial assets. Tracking the asset side of household balance sheets gives us a more accurate picture of systemic risk since changes in wealth affect households’ ability to pay their debt.
It is important to note that the Joint Year 2000 Council is not the “international Year 2000 enforcement agency.” We do not have on-site examiners, nor are we meant to replace the efforts of national regulators. The Council established an External Consultative Committee, or ECC, to enhance the degree of information sharing between the public and private sectors.