Kenneth Rogoff on Debt and Financial Crises [UPDATED]

Published on


Kenneth Rogoff is the author of the best-seller, This Time Is Different: Eight Centuries of Financial Folly. Rogoff is also a Professor of economics and public policy at Harvard. Rogoff was previously the Chief Economist and Director of Research at the IMF.

All times are EST and PM:

12:20: The best investment idea and theme is children. There is a huge amount of public and private debt, and all different types of debt.

12:21: We are at record levels and this will be a drag on the economy for some time to come. He wants his children to be indebted to his parents and not because of him.

12:22: Very few economists actually focus on debt, it is a ‘fringe field.’ Despite the fact that 3/4 of assets are debt, there is limited studies on it. Worked on studying this topic for over 10 years.

12:25: The S&P fell a total of 56%, housing prices 36%, and real GDP per capita 9.3%.

12:27: Debt usually doubles during a financial crisis, which is what we have done.

12:27: Greece is not exceptional, and many countries are in this situation. Greece has been in default almost every year since their independence.

12:29: The Euro project was a great idea, and the attempt of political union between Germany and France in particular. It will not survive unless action is taken quickly.

12:30: Chess is a good analogy for the world. Most computers can imitate most people at chess. He used to think that he could learn a lot from how people play chess, but this is no longer true.

12:32: People look at diagrams and look at what to do. Rogoff thinks besides raising revenue and increasing education, health should be improved.

12:34: The book only took off a year after the publication.

End of presentation




Signup to ValueWalk!

Get the latest posts on what's happening in the hedge fund and investing world sent straight to your inbox! 
This is information you won't get anywhere else!