In 2007, countries in the euro periphery were enjoying stable growth, low deficits and low spreads. Then the financial … crisis erupted and pushed them into deep recession, raising their deficits and debt levels. By 2010, they were facing severe … debt problems. Spreads increased and, surprisingly, so did the share of the debt held by domestic creditors. Credit was …

In 2007, countries in the Euro periphery were enjoying stable growth, low deficits, and low spreads. Then the financial … crisis erupted and pushed them into deep recessions, raising their deficits and debt levels. By 2010,they were facing severe … debt problems. Spreads increased and, surprisingly, so did the share of the debt held by domestic creditors. Credit was …

's capitalists to support opening up the economy to FDI. This attitude switch is more likely to occur the greater the debt overhang …

In this paper we empirically explore the relationship between debt and output in a panel of 72 countries over the … predicted by a standard small open economy model by Aguiar and Gopinath (2007), where debt and output endogenously respond to … total factor productivity (TFP) shocks. First, developing countries' debt falls after a positive output shock, while the …

cyclical variations in the U.S. international debt position. The model estimates quantify the role played by financial and real … factors in driving these dynamics, and their impact on the steady state debt position. I find that financial factors raise the … steady state debt level by three percent of GDP, and account for 80 percent the cyclical variations. In contrast, real …

countries converging to a common currency system, in particular, to the euro. The analytical framework assumes inflation target … the euro. However, feasibility of adopting money growth rules depends on stable relationships between money and target …