The economic and fiscal consequences of financial crises

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: F0 E6 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-fdg, nep-mac and nep-ure
Date: 2009-01-26
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Persistent link: http://EconPapers.repec.org/RePEc:pra:mprapa:13025

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