and understudied ways. This paper studies the co-evolution of public and private sector debt in advanced countries since … the expansion of public debt. However, we find evidence that high levels of public debt have tended to exacerbate the …

We argue that, through its effect on aggregate demand and country risk premia, sovereign debt restructuring can … debt rescheduling episodes are indeed systematically accompanied by a decline in foreign credit to emerging market private … firms, both during debt renegotiations and for over two years after the agreements are reached. This decline is large (over …