Is the world economy in a debt trap?

Oct. 6, 2022

A recent special report in The Economist cites work by JRCPPF director Atif Mian, Ludwig Straub, and Amir Sufi on the “savings glut of the rich”. A working paper by these three economists shows that over the past 35 years the top 1% of Americans have saved a lot, leading to what the authors term a 'savings glut' globally. This glut has been accompanied not by increased investment, but rather  growing public and household debt, leading to concerns about what may happen as interest rates rise.