Dr. Atif Mian’s Lecture on House of Debt at NSPP
Dr. Atif Mian delivered a lecture on his book, House of Debt at National School of Public Policy (NSPP) in July and explained how household debt was responsible for the US economic recession. He explained that as the house prices crash, the borrowers cut back on consumption which results in fall in aggregate demand in economy. He suggested that the solution to this problem is to promote risk sharing in debt based on state dependent contingencies. The lecture was followed by an interactive question and answer session.