The two-day conference will drive cutting-edge private debt scholarship, led by INET’s Chairman, Adair Turner and convene prominent scholars of private debt to address the following (non-exhaustive) questions:
- Theoretically, how do we go past the Bernanke conundrum? Ben Bernanke’s summary to dismiss the concerns surrounding private debt “Since one unit’s liability is another unit’s asset, changes in leverage represent no more than a redistribution for one group (debtors) to another (creditors) …and should have no significant macroeconomic effects” appears clearly mistaken. Yet, we have no clear theoretical framing of the concerns surrounding private debt. Which are the more fruitful avenues through which to approach the question of macroeconomic performance and private debt?
- How does one address the relationship between private debt growth and policy? Is private debt growth the inevitable consequence of public sector consolidation? How should one think about the effect of monetary and fiscal policy on private debt growth-both have effects that are not adequately recognized.
- What are the empirical challenges in understanding the growth of private debt? What concerns are there as to what key lacunae exist and what may be being missed by the current data generating methods?
- In a world of global capital mobility, how should one think about the international dimensions of private debt build up? These concerns are now beginning to be of concern in non-OECD countries such as China or India as well.
- What is the best forms of combating the malign effects of excessive private debt? What tools are available and what need to be constructed? How can these be managed?
At the end of the workshop, we will put together a report on the proceedings and create a pathway for more and better research along all these dimensions. The hope is that this becomes a catalyst for a much more extensive and long-term engagement with the issues.