Shining a Light on Debt

Ceyla Pazarbasioglu and Carmen Reinhart

MPRA Paper from University Library of Munich, Germany

Abstract: As the COVID-19 crisis lingers, emerging market and developing economies are entering perilous waters that evoke memories of past debt defaults. Although all countries amassed debt to fight the pandemic, the economic recovery in these economies substantially lags their advanced economy counterparts. Tighter monetary policies in advanced economies are poised to push up international interest rates, which tends to put pressure on currencies and heighten the odds of default. To complicate matters, the extent of many emerging market and developing economy liabilities and their terms aren’t fully known. If they are to foster a sustained recovery and limit the risk of a crisis, they must make a full accounting of hidden debts, both public and private.

Keywords: public debt; private debt; transparency; banks; bad loans; hidden debts (search for similar items in EconPapers)
JEL-codes: E0 F3 F34 G0 G01 G2 G21 (search for similar items in EconPapers)
Date: 2022-03-01, Revised 2022-03-01
New Economics Papers: this item is included in nep-opm
References: View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Published in Finance and Development Spring (2022): pp. 10-13

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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:117566

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