Do countries “graduate” from crises? Some historical perspective

Carmen Reinhart, Rong Qian () and Kenneth Rogoff

MPRA Paper from University Library of Munich, Germany

Abstract: The widespread banking crises since 2007 among advanced economies and the “near” default of Greece in 2010 dashed the popular notion that rich countries have outgrown severe financial crises. Record or near-record declines in output accompanying these events signaled the end of the short-lived “great moderation era.” In fact, graduation from recurring sovereign external debt crises is a very tortuous process that sometimes takes a century or more. For banking crises, we simply do not know what it takes to graduate; it is unclear whether any country has managed it.

Keywords: financial crisis; debt; default; banking; reversals; duration (search for similar items in EconPapers)
JEL-codes: E0 F3 N0 (search for similar items in EconPapers)
Date: 2010-08
New Economics Papers: this item is included in nep-ban, nep-his, nep-ifn and nep-mac
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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https://mpra.ub.uni-muenchen.de/24761/1/MPRA_paper_24761.pdf original version (application/pdf)

Related works:
Chapter: On Graduation from Default, Inflation and Banking Crises: Elusive or Illusion? (2011)
Working Paper: On Graduation from Default, Inflation and Banking Crisis: Elusive or Illusion? (2010)
Working Paper: On Graduation from Default, Inflation and Banking Crises: Elusive or Illusion?
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:24761

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