The Next (but not new) Frontier for Sovereign Default

Reinhart, Carmen (2008): The Next (but not new) Frontier for Sovereign Default. Published in: VoxEU-CEPR (April 2008): pp. 1-9.

Abstract

There is a view today that “this time it’s different” for emerging markets. Governments are reducing their dependence on external debt and relying more on domestic debt financing for the first time! Furthermore, emerging market governments are increasingly issuing long-term domestic debt. Indeed, often this change in government debt management patterns is taken as evidence of graduation from “serial default.” In this new world, debt crises in emerging markets will be a thing of the past, and the IMF is plainly out of business.

• Item Type: MPRA Paper
• Language: English
• Keywords: domestic debt; sovereign default
• Subjects: E - Macroeconomics and Monetary Economics > E0 - General

References

This article is based on Carmen M. Reinhart and Kenneth S. Rogoff’s (2008) “The Forgotten History of Domestic Debt.” NBER Working Paper 13946, April (2008).

Carmen M. Reinhart, Kenneth S. Rogoff, and Miguel A. Savastano (2003). “Debt Intolerance,” Brookings Papers on Economic Activity, Spring, 1–74,