EconPapers    
Economics at your fingertips  
 

The Role of Financial Stress in Debt and Recovery

Christian Proaño, Christian Schoder and Willi Semmler ()

No 2012-02, SCEPA policy note series. from Schwartz Center for Economic Policy Analysis (SCEPA), The New School

Abstract: This research contradicts the highly cited Rienhart and Rogoff study, which states that debt higher than 90% of GDP will negatively affect a country's economic growth. Rather, the authors' prove that the presence of unstable markets is the determining factor for debt's impact on economic growth. This explains why austerity policies intended to lower debt in Europe failed. Implemented after Europe's transition to the euro, markets were already destabilized. An expanded version of this research, 'Financial Stress, Sovereign Debt and Economic Activity in Industrialized Countries,' was published in the Journal of International Money and Finance.

Keywords: Debt; Financial Stress; Recover (search for similar items in EconPapers)
JEL-codes: D63 E21 H2 H30 (search for similar items in EconPapers)
Pages: 2 pages
Date: 2013-12
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
http://www.economicpolicyresearch.org/images/docs/ ... roano_PN_3.10.14.pdf (application/pdf)

Related works:
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:epa:cepapn:2013_02

Access Statistics for this paper

More papers in SCEPA policy note series. from Schwartz Center for Economic Policy Analysis (SCEPA), The New School Contact information at EDIRC.
Bibliographic data for series maintained by Bridget Fisher ().

 
Page updated 2022-06-29
Handle: RePEc:epa:cepapn:2013_02