Debt and Secular Stagnation: Amir Sufi Discusses the US “Recovery” (Video)

The global financial crisis of 2008 continues to weigh on the US economy. According to Amir Sufi, professor of finance at the University of Chicago Booth School of Business, GDP growth in the United States has been unable to return to pre-crisis levels, and its trajectory may have been permanently altered.

In his presentation at the 2014 Financial Analysts Seminar in Chicago, Sufi discussed how Federal Reserve actions, including quantitative easing, have led to increased prices for financial assets. However, post-crisis economic growth in the United States may not be sustainable, especially if it is due to a situation in which “subprime lending drives spending.”

You can watch the full video of Sufi’s presentation below to hear his discussion about secular stagnation and what it means for long-term economic prospects in the United States:

Sufi explores these ideas in greater detail with his coauthor, Atif Mian, on their website, House of Debt.

Please note that the content of this site should not be construed as investment advice, nor do the opinions expressed necessarily reflect the views of CFA Institute.