Emerging market and developing economies have experienced recurrent episodes of rapid debt accumulation over the past … fifty years. This paper examines the consequences of debt accumulation using a three-pronged approach: an event study of … debt accumulation episodes in 100 emerging market and developing economies since 1970; a series of econometric models …

interest rates. To do so, we employ a model that incorporates a crisis risk triggered by an accumulation of government debt …. The model shows that the fear of large-scale taxation on capital and misallocations of capital in future debt crises …

Episodes of debt accumulation have been a recurrent feature of the global economy over the past fifty years. Since 2010 …, emerging and developing economies have experienced another wave of historically large and rapid debt accumulation. Similar past … debt buildups have often ended in widespread financial crises in these economies. This paper examines the factors that are …

Debt in emerging market and developing economies (EMDEs) is at its highest level in half a century. In about nine out … of 10 EMDEs, debt is higher now than it was in 2010 and, in half of the EMDEs, debt is more than 30 percentage points of … gross domestic product higher. Historically, elevated debt levels increased the incidence of debt distress, particularly in …

The COVID-19 pandemic has triggered a massive increase in global debt levels and exacerbated the trade-offs between the … benefits and costs of accumulating government debt. This paper examines these trade-offs by putting the recent debt boom into a … debt levels rose to record highs, and at their fastest single-year pace, in five decades. Second, the debt …

. Examples include statistical models that seek to separate “good” from “bad” changes in private-sector debt aggregates, new … debt that financial markets produce. We conclude with some advice for revising central banks' Monetary Policy Reports …