Skip to main content

Professor Jeff Frank, a Finance expert at Royal Holloway’s Economics Department, has been interviewed for an article by Newsweek

Professor Jeff Frank, a Finance expert at Royal Holloway’s Economics Department, has been interviewed for an article by Newsweek

  • Date10 August 2020

Professor Jeff Frank has been interviewed by Newsweek for their article - A $10 Trillion Corporate Debt Bomb Is Waiting to Explode the U.S. Economy

Professor Jeff Frank observed: 

"The government and the Fed have thrown their entire arsenal at the early stages of the pandemic. The Fed's balance sheet has already jumped from $4 trillion to $7 trillion, an increase equivalent to the total increase during the financial crisis."

Much of this was wasted on demand stimulus measures, when the problem is a supply shock.  Instead, help needs to be targeted to people in need and ‘otherwise successful businesses to bridge the gap during a period when private credit markets will be limited or effectively closed’.

Frank points out that the gap is likely to be ‘measured in years’.

Frank has earlier written on the pandemic and the corporate finance markets in The Conversation: https://theconversation.com/corporate-debt-is-in-serious-trouble-heres-what-it-means-if-the-market-collapses-135371

Frank, who has taught Finance at Harvard and Berkeley, as well as at Royal Holloway, is writing a book on Money for Millennials about the impact of monetary policy on the Millennial and Zoomer generations. 

 

You can read the Full article here - https://www.newsweek.com/coronavirus-corporate-debt-covid-19-bonds-federal-reserve-1521219

Related topics

Explore Royal Holloway

Get help paying for your studies at Royal Holloway through a range of scholarships and bursaries.

There are lots of exciting ways to get involved at Royal Holloway. Discover new interests and enjoy existing ones.

Heading to university is exciting. Finding the right place to live will get you off to a good start.

Whether you need support with your health or practical advice on budgeting or finding part-time work, we can help.

Discover more about our academic departments and schools.

Find out why Royal Holloway is in the top 25% of UK universities for research rated ‘world-leading’ or ‘internationally excellent’.

Royal Holloway is a research intensive university and our academics collaborate across disciplines to achieve excellence.

Discover world-class research at Royal Holloway.

Discover more about who we are today, and our vision for the future.

Royal Holloway began as two pioneering colleges for the education of women in the 19th century, and their spirit lives on today.

We’ve played a role in thousands of careers, some of them particularly remarkable.

Find about our decision-making processes and the people who lead and manage Royal Holloway today.