Financial and Sovereign Debt Crises: Some Lessons Learned and Those Forgotten
Carmen Reinhart and
Kenneth Rogoff
Journal of Banking and Financial Economics, 2015, vol. 2, issue 4, 5-17
Abstract:
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.
Keywords: Financial crises; sovereign debt crises; deleveraging; credit cycles; financial repression; debt restructuring; debt forgiveness; capital controls; austerity. (search for similar items in EconPapers)
JEL-codes: E44 E6 F3 F34 G1 H6 N10 (search for similar items in EconPapers)
Date: 2015
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (16)
Downloads: (external link)
http://www.wz.uw.edu.pl/portaleFiles/3842-journal- ... tReinhart,Rogoff.pdf (text/html)
Related works:
Working Paper: Financial and Sovereign Debt Crises: Some Lessons Learned and Those Forgotten (2013) 
Working Paper: Financial and Sovereign Debt Crises: Some Lessons Learned and Those Forgotten (2013) 
Working Paper: Financial and Sovereign Debt Crises: Some Lessons Learned and Those Forgotten (2013) 
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:sgm:jbfeuw:v:2:y:2015:i:4:p:5-17
Access Statistics for this article
More articles in Journal of Banking and Financial Economics from University of Warsaw, Faculty of Management Contact information at EDIRC.
Bibliographic data for series maintained by ().