Journal
AMERICAN ECONOMIC REVIEW
Volume 101, Issue 5, Pages 1676-1706Publisher
AMER ECONOMIC ASSOC
DOI: 10.1257/aer.101.5.1676
Keywords
-
Categories
Ask authors/readers for more resources
Newly developed historical time series on public debt, along with data on external debts, allow a deeper analysis of the debt cycles underlying serial debt and banking crises. We test three related hypotheses at both world aggregate levels and on an individual country basis. First, external debt surges are an antecedent to banking crises. Second, banking crises (domestic and those in financial centers) often precede or accompany sovereign debt crises; we find they help predict them. Third, public borrowing surges ahead of external sovereign default, as governments have hidden domestic debts that exceed the better documented levels of external debt. (JEL E44, F34, F44, G01, H63, N20)
Authors
I am an author on this paper
Click your name to claim this paper and add it to your profile.
Reviews
Recommended
No Data Available