European Parliament Library

Financial and Sovereign Debt Crises :, Some Lessons Learned and Those Forgotten, Carmen Reinhart, Kenneth Rogoff

Even after one of the most severe multi-year crises on record in the advanced economies, the received wisdom in policy circles clings to the notion that high-income countries are completely different from their emerging market counterparts. The current phase of the official policy approach is predicated on the assumption that debt sustainability can be achieved through a mix of austerity, forbearance and growth. The claim is that advanced countries do not need to resort to the standard toolkit of emerging markets, including debt restructurings and conversions, higher inflation, capital controls and other forms of financial repression. As we document, this claim is at odds with the historical track record of most advanced economies, where debt restructuring or conversions, financial Repression, and a tolerance for higher inflation, or a combination of these were an integral part of the resolution of significant past debt overhangs
Table Of Contents
Cover; Contents; I. Introduction; II. Financial Liberalization, Financial Crises, and Crisis Prevention; Figures; 1. Varieties of Crises: World Aggregate, 1900-2010; III. Today's Multifaceted Debt Overhang; 2. Gross Central Government Debt as a Percentage of GDP: Advanced and Emerging Market Economies, 1900-2011 (unweighted average); 3. Gross Total (Public plus Private) External Debt as a Percentage of GDP: 22 advanced and 25 emerging market economies, 1970-2011; IV. How Will the Debt Be Reduced?; 4. Private Domestic Credit as a Percentage of GDP, 1950-2011
Literary Form
non fiction
Description based upon print version of record
Physical Description
1 online resource (22 p.)
Specific Material Designation
Form Of Item

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