Policymakers have a tried-and-true game plan for jump-starting the economy in times of severe recession: Push stimulus packages and lower interest rates so Americans will borrow and spend. But economist Amir Sufi says the way we traditionally address a recession is deeply flawed. He argues that by encouraging "sugar-rush" solutions, the nation is putting poor and middle-class Americans and the entire economy at even greater risk. This week we look at the role of debt as a hidden driver of recessions, and how we might create a more stable system.
Paul Vigna sits down with Amir Sufi, professor at the University of Chicago, to discuss what public debt is doing to the economy, and the global outlook for 2016. Learn more about your ad choices. Visit megaphone.fm/adchoices
Conversation with Profs. Amir Sufi and Paul M. Vaaler
The latest podcast features two of the speakers who will be featured at the upcoming Interdisciplinary Academic Symposium on Debt as ABI Executive Director Samuel J. Gerdano talks with Profs. Amir Sufi of the University of Chicago and Paul M. Vaaler of the University of Minnesota. Sponsored by ABI and the University of Illinois, the Symposium taking place May 2-3 will feature leading U.S. and international scholars talking about debt from a wide range of academic disciplines. Prof. Vaaler's presentation focuses on how and why credit assessors get it wrong when judging the risk of borrowers, while Prof. Sufi attributes the mortgage default crisis in large part to the degree of separation between borrower and lender via the securitization process.
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