Prof. Amy Finkelstein speaks with New York Times reporter Sarah Kliff about “the impact of medical debt relief on individuals.” “The idea that maybe we could get rid of medical debt, and it wouldn’t cost that much money but it would make a big difference, was appealing,” says Finkelstein. “What we learned, unfortunately, is that it doesn’t look like it has much of an impact.”
New York Times columnist David Leonhardt highlights Prof. Emeritus Olivier Blanchard’s address to the American Economic Association, in which he argued that governments are overly concerned with debt. “Blanchard’s case revolves around the fact that economic growth rates in modern times are usually higher than interest rates. This pattern means that governments can often repay their debts more easily than people expect,” Leonhardt explains.
In an article for Fortune, Prof. Deborah Lucas examines how worried investors should be worried about debt-burdened cities in China. Lucas writes that a new MIT study found that “while the massive debt buildup in China presents challenges, the situation is not as dire as a full-blown debt crisis.”
Prof. Xavier Giroud writes for Fortune that corporate debt played a large role in the Great Recession. “While it’s true that high levels of consumer debt helped lay the groundwork for the long economic slump that followed the financial crisis, other factors—including high levels of corporate debt—also played an important role,” Giroud explains.