Bonds: Heroes or villains?
Summary
Host Rob Young explores the history and power of financial bonds, tracing their origins from 12th-century Italian city-states to modern global markets. Featuring economists Kenneth Rogoff and Sarah Quinn, the episode examines how bond markets have evolved from simple war financing tools into complex instruments that now rival stock markets in size. The discussion highlights the political influence bondholders hold over governments, the risks of deregulation and financial complexity, and the potential for future fiscal crises as interest rates rise.
Topics discussed
Sponsorships and introduction
Episode overview: The cost of government borrowing
James Bond vs. financial bonds: Heroes or villains?
Historical context and expert introductions
What is a bond and why are they crucial?
Origins of bonds in Italian city states and the Dutch East India Company
A 400-year-old bond still paying interest at Yale
Sponsor break and episode recap
Bonds and warfare: Financing military efforts
First sovereign debt crises and the Bank of England
Modern bond markets: Size, complexity, and diverse issuers
Deregulation, securitization, and the 2008 financial crisis
Bond market power and political influence over governments
Future risks: Inflation, defaults, and fiscal crises
Closing remarks and where to find more content
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