Banking, Currency, Stock Market and Debt Crises: Revisiting Reinhart & Rogoff Debt Analysis in Spain, 1850-1995

J. Carles Maixé-Altés and Emma Iglesias

MPRA Paper from University Library of Munich, Germany

Abstract: What type of crisis is generated when debt increases? We study the Spanish debt evolution in the 19th and 20th centuries by introducing currency and stock-market crises in the Reinhart and Rogoff (2011) framework. We find their same results for the determinants of banking and debt crises but substituting external and public debt with perpetual debt. Moreover, we find that currency crises depend strongly and positively on financial centers crises and negatively and mildly on perpetual debt. We justify the negative relationship due to an inflation tax. We also find that stock-market crises depend only positively and strongly on financial centers crises.

Keywords: Austerity; Macroeconomic Policy; Fiscal Policy; Banking Crises; Currency Crises; Stock Market Crises; Debt Crises; Financial History (search for similar items in EconPapers)
JEL-codes: E44 E60 E62 F34 F44 G01 H63 N10 N20 (search for similar items in EconPapers)
Date: 2015-12-04
New Economics Papers: this item is included in nep-his, nep-mac, nep-opm and nep-pbe
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:68199

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