The economic and fiscal consequences of financial crises

Carmen Reinhart

MPRA Paper from University Library of Munich, Germany

Abstract: Financial crises are historically associated with the “4 deadly D’s”: Sharp economic downturns follow banking crises; with government revenues dragged down, fiscal deficits worsen; deficits lead to debt; as debt piles up rating downgrades follow. For the most fortunate countries, the crisis does not lead to the deadliest D: default, but for many it has.

Keywords: financial crises; unemployment; debt; deficit; housing prices (search for similar items in EconPapers)
JEL-codes: E6 F0 (search for similar items in EconPapers)
Date: 2009-01-26
New Economics Papers: this item is included in nep-fdg, nep-mac and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (14)

Published in VoxEU-Centre for Economic Policy Research (2009): pp. 1-10

Downloads: (external link)
https://mpra.ub.uni-muenchen.de/13025/1/MPRA_paper_13025.pdf original version (application/pdf)

Related works:
Working Paper: Reflections on the International Dimensions and Policy Lessons of the U.S. Subprime Crisis (2008)
Working Paper: Eight Hundred Years of Financial Folly (2008)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:13025

Access Statistics for this paper

More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Joachim Winter (winter@lmu.de).