Sovereign Default in the US

Ozgur Ergungor ()

No 1609, Working Papers (Old Series) from Federal Reserve Bank of Cleveland

Abstract: In the absence of a judicial mechanism to reduce the debt burden of a sovereign member of our Union, the resolution process can be quick but perhaps too indifferent to the health, safety, and welfare of the affected residents. In this paper, I use evidence from the Arkansas state archives to provide a description of the events surrounding the default of the state in 1933. I examine the evolution of the negotiations, the outcomes, and the role of fiscal policy.

Keywords: sovereign defaults; municipal bankruptcy; Great Depression; Arkansas highway bonds (search for similar items in EconPapers)
JEL-codes: G01 H74 K10 N22 (search for similar items in EconPapers)
Pages: 24 pages
Date: 2016-04-06
New Economics Papers: this item is included in nep-cba
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Citations: View citations in EconPapers (3)

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