Felix Kübler
SFI Senior Chair, Professor of Finance, University of Zurich
Felix Kübler is Professor of Financial Economics at the University of Zurich. Before joining the faculty in Zurich, Professor Kübler held professorships at Stanford University, the University of Pennsylvania, and the University of Mannheim. He also serves on the editorial boards of several economics and financial journals.
Expertise
Professor Kübler revisits the question of determining whether deficit finance is free when economic growth rates exceed government borrowing rates. This question cannot be answered solely by considering the difference between the growth and risk-free rates, as this says nothing about the fiscal cost of debt. In a structural model, he shows that the fiscal cost of debt can be substantial even if the average risk-free rate lies as much as two percentage points below the average growth rate. These results warn against taking low interest rates as sufficient grounds for running a deficit. A practice many governments have been pursuing over the past 15 years…
Expertise Fields
- Financial Markets
- Financial Crises
- Systemic Risk and Regulation
- Portfolio Management and Asset Classes
- Asset Pricing
- Frontier Topics
- Sustainable Finance