America’s Recurring Debt Problem: Are We Approaching a New Tipping Point?
A discussion featuring Karen Dynan, Professor of Economics at Harvard University, William Emmons, Lead Economist at the Center for Household Financial Stability at the Federal Reserve Bank of St. Louis, and Atif Mian, Professor of Economics and Public Affairs at Princeton University.
Private debt is again on the rise in the United States, driven by significant increases in auto loans and student borrowing. The increase in debt has helped support economic growth in the U.S. and world economies over the last couple years, but at some time in the future it will become a drag on consumption and investment and may even begin to compromise bank balance sheets, especially if interest rates begin to rise and debt servicing burdens increase. Several leading experts will offer their assessment of how this new rise in private debt impacts economic growth and discuss the financial risks posed by the continuous large overhang of private debt.
NOTE: Federal Reserve Bank of St. Louis’s participation in this cosponsored activity does not constitute or imply an endorsement, recommendation or favoring endorsement of the views, opinions, products or services of any cosponsor or other person or entity by the Federal Reserve Bank of St. Louis.
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About the World Economic Roundtable
The bursting of the American credit bubble in 2008 set in motion a rolling world economic crisis that has moved from America’s financial markets to the Euro-zone and now to China and the emerging economies. This chain of economic developments has brought with it unprecedented policy challenges and has drawn into question the process of globalization itself. The mission of the World Economic Roundtable is two-fold:
- to help the business, investment, media, policy and public interest communities better understand the far-reaching changes in the world economy that are resulting from the crisis and from the policy responses to it; and
- to advance policy reform ideas that will help lift the world economy out of stagnation and lay the foundations for the next generation of a more widely shared global prosperity.
Founded in 2011, the World Economic Roundtable has sought to “remap” the world economy by exploring the changing patterns of global trade, investment, and employment following the Great Recession. The Roundtable has brought together thought leaders from business, finance, public policy, and academia to discuss critical questions affecting the global economy. The Institute for New Economic Thinking joined New America NYC as a partner of the World Economic Roundtable in 2016. Building on the work of its initial years, World Economic Roundtable will pursue in 2017 a program of discussion and engagement with the world’s business, policy and investment communities that will highlight the best thinking on the ongoing world economic crisis and how to move from stagnation to healthy economic growth.