Does Forgiving Debt Automatically Improve Well-Being?
Sep. 30, 2024
Neale Mahoney, Professor in the Department of Economics at Stanford University discusses his research, revealing that debt relief may not automatically lead to improvements in financial and mental well-being.
Mahoney was recently in Stockholm to speak at a conference hosted by the Swedish House of Finance titled "Rethinking Household Debt Relief: Should Swedes Be More Forgiving?". In this interview, he discussed:
- The effectiveness—or lack thereof—of debt forgiveness programs.
- Addressing common assumptions about the impact of debt relief on financial and mental health.
- Recommendations for policymakers and financial institutions in designing effective debt relief programs.
- If debt relief programs to prevent a larger crisis.