Cohen, Daniel; Villemot, SĂ©bastien - C.E.P.R. Discussion Papers - 2011
We distinguish two types of debt crises: those that are the outcome of exogenous shocks (to productivity growth for instance) and those that are endogenously created, either by self-fulfilling panic in financial markets or by the reckless behavior of "Panglossian" borrowers. After Krugman, we...