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...

Interconnections between banking crises and fiscal crises have a long history. We document the long-run evolution from classic banking panics toward modern banking crises where financial guarantees are associated with crisis resolution. Recent crises feature a feedback loop between bank...

The German experience of the crisis was very different compared to those of most other countries in Europe. Germany was hit by a very strong shock which was relatively concentrated in the exporting, manufacturing industries. In addition, the German labour market was very resilient during the...

We compare the experience of Latin American external debt crises, in particular the one in the 80s, with the current European one. We do so with the aim of shedding some light on the needed adjustment mechanisms. We argue for the need of much larger debt relief in Europe. To address the moral...

The European crisis did not originate with the Euro but with the excessive public debt of peripheral Eurozone countries. The 'great moderation' that had kept the euro sheltered from the storms proved a boon, because it granted the currency the status of a sound asset, but it was also a bane...

Even after one of the most severe multi-year crises on record in the advanced economies, the received wisdom in policy circles clings to the notion that high-income countries are completely different from their emerging market counterparts. The current phase of the official policy approach is...

This paper applies both conventional panel data models and a dynamic simultaneous equations model to analyze the impact of fiscal austerity and growth prospects along with other macro fundamentals on the pricing of sovereign credit default swaps (CDS) for a panel of 36 countries including the...

Starting with the framework of New Institutional Economics, this Comment examines the institutional arrangements of Chinese and U.S. governance, and then scrutinizes their respective policy responses to the financial collapse of 2008. The latent thesis is that, notwithstanding differences in...

Purpose: This paper is an analysis based on the comparison of the Greek Depression with the Great Depression of 1929 in the US. Design/methodology/approach: This analysis does neither focus on the pre-crisis period, nor on the manifestation of the crisis or the structural problems and economic...

This paper analyzes the determinants of domestic public debt crisis. There have been many studies that examine the causes and consequences of external debt crisis. However, little attention has been put to domestic debt crisis and the importance of it has been neglected. This is mainly due to...