Debt Talks Episode 3 | How Bad Can It Still Get? Credit Risks, Debt Overhang, and the COVID-19 Recession

Click to Register | moderated by Moritz Schularick with Megan Greene, Anatole Koletsky and Yueran Ma

Oct 20, 2020 | 12:00 – 13:00 Download .ics

|

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?

Debt Talks is an INET webinar series that brings together diverse voices to discuss one of the most pressing economic issue of our times: the surge in indebtedness. We host prominent thinkers, policy-makers, and scholars from different backgrounds and countries to present and debate their views. Each installment features a lively panel presentation followed by Q&A. INET Fellow Moritz Schularick moderates the events.

The world economy entered the COVID-19 pandemic with record debt levels. Since the global financial crisis, private and public debts have grown to more than $250 trillion, about three times global GDP. With the current crisis, global debt will surge even further. This has deep implications for the way our economies, societies, and politics work. In this series we explore what’s driving this increase in debt, and is indebtedness still manageable, or do we need a debt jubilee? Can households and companies cope with the overhang of debt? And what are the implications for growth, equity, and financial stability?

In this installment, we will discuss the current situation in credit markets and look at default risks and potential losses in loan and bond markets in the U.S. and internationally. We will also ask whether an overhang of debt on corporate balance sheets will slow down the recovery from the COVID recession and be a drag on investment going forward. Over all, we will try to understand if the COVID recession still has the potential to turn into a broader financial meltdown.

Partners and sponsors

Speakers

Meet the leaders and scholars whose new thinking guides our work. View all speakers

  • Megan Greene

    Senior Fellow, M-RCBG at Harvard Kennedy School

  • Anatole Kaletsky

    Founder and Chairman, GaveKal Dragonomics

  • Yueran Ma

    Assistant professor, University of Chicago Booth School of Business

  • Moritz Schularick

    Professor of Economics, University of Bonn

    Research Department, Federal Reserve Bank of New York