According to author and economist Tomáš Sedláček, economic policies that emphasize growth above all else will only lead to debt. “Debt is a dangerous journey through time, while interest is a sinister weapon,” Sedláček proclaimed in an interview with DER SPIEGEL magazine. Instead of courting debt in a short-sighted pursuit of growth, Sedláček feels that the general goal of economic policy should be to minimize debt — even if it means failing to maximize GDP.
Sedláček is chief macroeconomic strategist at Czech bank ČSOB and a former member of the National Economic Council of the Czech Republic. He is also author of the book Economics of Good and Evil and openly advocates economic policies that reserve budget surpluses in economically strong years while limiting the amount of debt that countries can issue during periods of economic weakness.
At the Fifth Annual CFA Institute European Investment Conference in Prague, Sedláček will be discussing ideas from his book in greater detail. You can register to attend the conference and follow this blog for more speaker updates as the event draws closer.