Reinhart, Carmen M.; Rogoff, Kenneth; Savastano, Miguel A. - 2021
This paper introduces the concept of debt intolerance,' which manifests itself in the extreme duress many emerging … markets experience at debt levels that would seem manageable by advanced country standards. We argue that safe' external debt …-to-GNP thresholds for debt intolerant countries are low, perhaps as low as 15 percent in some cases. These thresholds depend on a …
