Indebted Demand

Atif Mian discusses the theory of indebted demand, capturing the idea that large debt burdens by households and governments lower aggregate demand, and thus natural interest rates. Atif Mian is John H. Laporte Jr. Class of 1967 Professor of Economics, Public Policy, and Finance at Princeton University, and the Director of the Julis-Rabinowitz Center for Public Policy and Finance at the Princeton School of Public and International Affairs. In 2014, the International Monetary Fund identified Atif as one of twenty-five young economists who it expects will shape the world’s thinking about the global economy in the future. Image courtesy of Atif Mian.

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