Is There a Corporate Debt Crisis?

Ben S. Bernanke and

Ben S. Bernanke Distinguished Fellow - The Brookings Institution, Economic Studies

John Y. Campbell

JYC

John Y. Campbell Harvard University

Discussants: Benjamin M. Friedman and

BMF

Benjamin M. Friedman Harvard University

Lawrence H. Summers

Lawrence H. Summers Charles W. Eliot University Professor and President Emeritus - Harvard University

CONCERN about the financial stability of the U.S. corporate sector has been a staple of the business press and, to a lesser extent, of academic research for years. Henry Kaufman has been particularly consistent in warning about the dangers of excessive debt, in the household and government sectors as well as in corporations. His most recent article stresses the rapid growth of debt relative to income, as well as deteriorating credit quality.