Dealing with debt

Reinhart, Carmen; Reinhart, Vincent; Rogoff, Kenneth

doi:10.1016/j.jinteco.2014.11.001

Cited by 81 publications

(32 citation statements)

References 48 publications

(58 reference statements)

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“…The most obvious economic benefit is the extent to which debt relief reduces debt repayments, so freeing money to invest (Ghosh et al 2013;Krugman 1988). Second, the LDA also provided stability to German finances after decades of political and economic instability, thus reducing the likelihood of a new default, waterproofing financial stability and lowering the cost of borrowing (Reinhart, Reinhart and Rogoff 2015;Reinhart and Trebesch 2016). Ultimately, the LDA led to a great deal of new German debt issues, equivalent to the sums originally relieved by the LDA.…”

Section: The Economic Benefits Of the Ldamentioning

confidence: 99%

The economic consequences of the 1953 London Debt Agreement

Galofré-Vilà

McKee

Meissner

et al. 2018

European Review of Economic History

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The views expressed herein are those of the authors and do not necessarily reflect the views of the National Bureau of Economic Research. At least one co-author has disclosed a financial relationship of potential relevance for this research. Further information is available online at http://www.nber.org/papers/w22557.ack NBER working papers are circulated for discussion and comment purposes. They have not been peer-reviewed or been subject to the review by the NBER Board of Directors that accompanies official NBER publications.

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Section: The Economic Benefits Of the Ldamentioning

confidence: 99%

The economic consequences of the 1953 London Debt Agreement

Galofré-Vilà

McKee

Meissner

et al. 2018

European Review of Economic History

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“…Different authors propose and describe different methods, such as fiscal stabilisation, public debt restructuring, macroeconomic stabilisation, developing the domestic financial market, all of which should influence public debt sustainability. According to Reinhart et al (2015), "countries with external debt, denominated in foreign currency, regulated by foreign courts, have many more limiting measures than countries whose debt is in the hands of domestic investors, for the largest part in domestic currency and regulated by domestic laws" (p. 33-34). Often the only solution for these former countries is debt restructuring, since printing money, due to inflation, is a measure impossible to enforce.…”

Section: Public Debttheoretical Basementioning

confidence: 99%

“…Countries with the major share of external debt face greater refinancing risk than countries with internal debt as the latter can simply print money in order to pay off the debt. This is why these countries mainly rely, in addition to debt restructuring, on the adjustment of primary balances, economic growth, and even the introduction of wealth taxation (Reinhart et al, 2015). Borensztein (2004) points out that "developing countries are in a very difficult position when it comes to long-term debt in domestic currencies" (p. 3).…”

Section: Public Debttheoretical Basementioning

confidence: 99%

Currency risk of public debt in Serbia: Current status and European lessons

Radosavljević¹,

Tomov²

2018

Industrija

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Currency risk, and its effect on public debt, is becoming more important in economic analysis, particularly in highly dollarized countries like Serbia. The aim of this paper is to analyse the currency structure of the public debt in Serbia and the associated risks, and to present the recommendations for improving public debt management based on international experiences. This paper analyses the currency structure of public debt of Serbia over the period 2004-2016, the comparative indicators of dollarization in Serbia and selected countries of the region, as well as the currency risk movements. The currency structure of the public debt of Serbia characterizes the predominance of three currenciesdinar, dollar and euro. Serbia is the most euroised country in the region, along with a marked highest share of dollar debt in total public debt. As a result, due to currency mismatch, the public debt of Serbia is exposed to high currency risk. Based on the presented successful examples of public debt management in Hungary and Poland, as countries with a low level of dollarization, the recommendations for improving public debt management system in Serbia are presented in the final section of our paper.

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“…For a recent review of this literature, seePanizza and Presbitero (2013) andReinhart, Reinhart and Rogoff (2015).…”

mentioning

confidence: 99%

Unbundled debt and economic growth in developed and developing economies: An empirical analysis

2018

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We unbundle the effect of debt on economic growth using a new panel data set sourced from Vague (2014, The next economic disaster: Why it's coming and how to avoid it. Philadelphia, PA: University of Pennsylvania Press) for 48 countries over the period 1961–2015. We distinguish between public, private, household and nonfinancial corporation (NFC) debt. We use the panel vector autoregressive approach, Granger causality tests and impulse response to establish causality. We also test the heterogeneity in the debt–growth relationship across developed and developing countries. In our full sample of countries, all types of debt appear to be harmful to economic growth. The negative effect of public debt appears to be uniform across developed and developing countries, although the impact is much stronger on developed countries. Household debt appears to be expansionary in developing countries whereas contractionary in developed countries. Nonfinancial corporation debt appears to have no impact on developing countries but negative impact on developed countries. Finally, total debt (i.e., the sum of public, household and NFC debt) has a negative impact on growth in developed countries, but no impact is detected in the case of developing countries.

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Dealing with debt

Cited by 81 publications

References 48 publications

The economic consequences of the 1953 London Debt Agreement

The economic consequences of the 1953 London Debt Agreement

Currency risk of public debt in Serbia: Current status and European lessons

Unbundled debt and economic growth in developed and developing economies: An empirical analysis

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