Practical analysis for investment professionals
15 May 2014

Debt: What’s Wrong With It? (Video)

Posted In: Economics

Paul Mills, senior economist at an intergovernmental organization, questions the conventional wisdom on debt while discussing rising debt levels and if the levels are sustainable. Mills contends that debt is given unfair advantage over equity; it is cheaper only initially, its full costs are realized over time and result in externalities. He further explains that it is for reasons such as politics and path dependence that the economy does not move away from debt towards alternative means of financing.

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This episode of the Take 15 Series was originally released on 13 May 2014.

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About the Author(s)
Usman Hayat, CFA

Usman Hayat writes about sustainable, responsible, and impact investing and Islamic finance. He is the lead author of "Environmental, Social, and Governance Issues in Investing: A Guide for Investment Professionals," and the literature review, "Islamic Finance: Ethics, Concepts, Practice." He is interested in online learning and has directed three e-courses for CFA Institute: "ESG-100," "Islamic Finance Quiz," and "Residual Income Equity Valuation." The other topics he writes about are macroeconomics and behavioral finance. Previously, he was a content director at CFA Institute. He is a former executive director at the Securities and Exchange Commission of Pakistan (SECP). He has experience working in securities regulation and as an independent consultant. His qualifications include the CFA charter, the FRM designation, an MBA, and an MA in Development Economics. His personal interests are reading and hiking.

1 thought on “Debt: What’s Wrong With It? (Video)”

  1. Your way of describing the whole thing in this paragraph is actually good, every
    one can easily be aware of it, Thanks a lot.

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