21 MARCH 2019


This podcast appeared in the OMFIF website.

Raul Elizalde, president of Path Financial LLC, and Heikki Hiilamo, professor of social policy at the University of Helsinki, join Pierre Ortlieb, economist at OMFIF, to talk about private debt and its implications for financial stability. As the volume of household and particularly corporate debt reaches unprecedented levels, the conversation explores how we got here and whether this development might once again trigger the kind of meltdown the global financial system experienced in 2008.

The podcast explored various issues related to private debt, including:

  • What causes a financial crisis? What caused the 2008 crash? Does private debt explain the Great Recession?
  • What factors lead to large build-up of private debt? Why are corporates so highly leveraged today? Has central bank action promoted the accumulation of debt and the proliferation of zombie firms?
  • What are the most dangerous dynamics in private debt markets today? Are there any steps being taken to defuse another debt-driven financial crisis?

Listen to the podcast here.