Business Daily Bonds: Heroes or villains?
Jan 12, 2026
Join Sarah Quinn, an Associate Professor of Sociology specializing in financial markets, and Kenneth Rogoff, a Harvard Economics Professor and former IMF Chief Economist, as they unveil the world of bonds. They discuss how these seemingly dull IOUs have shaped economies and financed wars throughout history. Discover the origins in 12th-century Italy, the risks of today’s complex bond market, and the political power that comes with debt. There are fears about a looming crisis as governments grapple with massive liabilities and rising interest rates.
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Bonds Have Deep Historical Power
- Bonds have existed for centuries and quietly shaped nations' finances and conflicts.
- They matter far more than their dull reputation suggests and underpin major public projects and wars.
What A Bond Actually Is
- A bond is an IOU where issuers promise to repay principal and interest at maturity.
- Bond markets trade those debts and enable large-scale borrowing by governments and firms.
Debt Drives Growth And Infrastructure
- Debt lets entrepreneurs and states mobilize resources without waiting to save capital.
- Railroads, factories and public goods all depended on borrowing to be built quickly.
