Private Debt

Predetermined profit margins and prices hidden in the back end of a transaction are really just market failures.

Which households are more exposed to financial risk and to what extent is their debt systemically relevant?

Examining the crucial role of poverty and inequality in shaping household indebtedness.

A Bank for International Settlements study says 60+ trillion dollars of off-the-books currency swaps could be a profound, systematic risk. Robert Johnson joins Paul Jay on theAnalysis.news.

Diamond-Dybvig-Bernanke is a flawed model of banking that has no room for a lender of last resort

Against the backdrop of frequent calls for debt cancellation and reorganization, the Private Debt Initiative of the Institute for New Economic Thinking is convening a conference on “Debt Restructuring” in New York City on Thursday, February 3rd and Friday February 4th, 2022, hosted by Richard Vague (Secretary of Banking and Securities, Commonwealth of Pennsylvania), Rob Johnson (INET President), and Moritz Shularick (INET Fellow).

Where are the US and Europe now and where could they be going?

Large-sale debt relief for indebted households could be a game changer.

Does the COVID recession still have the potential to turn into a broader financial meltdown?

Can developing countries cope with high debt levels? How dire is the situation? Has the policy response been adequate? And what’s the situation in private external debt, and what should be done about private creditors? This edition of Debt Talks will discuss the situation in developing country debt during and after the COVID-19 pandemic.

What is the current situation in private indebtedness in the U.S.? Recent ideas suggest that excessive levels of debt are an obstacle to a quick recovery and sustained economic growth.

What is the current situation in credit markets? Will an overhang of debt on corporate balance sheets slow down the recovery from the COVID recession and be a drag on investment going forward? Does the COVID recession still have the potential to turn into a broader financial meltdown?

Racial inequalities of wealth and income are pervasive. This episode of Debt Talks will feature a conversation with four prominent experts on the persistence of racial inequalities of wealth and income and the role of financial markets in shaping them.

Why freeing American households and businesses from crippling private debt would be a boon to the economy. Article reposted from DemocracyJournal.org.

A webinar panel discussion moderated by INET Fellow Moritz Schularick, with Laura Carvalho, Associate Professor of Economics at the University of São Paulo, Matthew C. Klein, Economics Commentator at Barron’s, and Amir Sufi, Bruce Lindsay Professor of Economics and Public Policy at the University of Chicago Booth School of Business.

Yueran Ma discusses her work with INET’s Private Debt Initiative

When the stock market grows faster than the housing market, the gains of the top 1% outpace those of the middle class

Richard Vague and Rob Johnson discuss the role of excessive lending in causing financial crises throughout history

Shaped by the 2008 financial crisis, a new generation of economists is expanding the boundaries of economic thinking on credit cycles, private debt, and financial stability.

Steven Pressman says in the next few years, we could see rising interest rates bring about a recession

Matthew Baron challenges conventional myths about booms and busts

The Private Debt initiative is an opportunity to articulate how private debt impacts the economy and to specify the pathways for its effects. The initiative will also lead to better knowledge for the use of regulators, policymakers, journalists, and the public. Finally, the Private Debt initiative will open a better-informed dialogue towards tangible solutions to the problems posed by excessive private debt.

Mainstream economists have ignored private debt to our peril

What role does debt play in triggering economic crises, and is the problem principally public or private sector debt?

China is drowning in it. The whole world has too much of it. History suggests: This won’t end well.

Inflation targeting insufficient: central banks and governments must manage the quantity and mix of credit created