Central Questions EP. 6: Who pays the price when we put off a financial decision?

Nov. 03, 2026

Economist Tarun Ramadorai argues that inaction is more than a personal finance problem. In markets such as UK mortgages, customers who fail to switch when an introductory rate expires can end up paying more—effectively subsidizing lower rates for those who act promptly. Financial firms can have incentives to profit from these patterns rather than help households avoid them.

In this episode of Central Questions, Ramadorai joins former Riksbank Governor Stefan Ingves to discuss how mortgages, pensions and other financial products shape household wellbeing, why longer lifespans and greater individual responsibility make these decisions increasingly important, and how simpler products and a financial “starter kit” could help households navigate saving, borrowing and retirement.

Drawing on Ramadorai’s research and recent book with John Campbell, they also discuss why financial education alone is insufficient, how consumer protection connects with financial stability, and whether AI can help people manage their money or deepen existing inequalities.

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Guest: Tarun Ramadorai, economist and co-author with John Campbell of a recent book on household finance

Host: Stefan Ingves, former Governor of the Swedish Central Bank and Senior Fellow at Swedish House of Finance