Debt intolerance: Executive summary

Reinhart, Carmen (2004): Debt intolerance: Executive summary.

Abstract

Speaking before the IDB Board of Directors, Carmen Reinhart discussed the syndrome of “debt intolerance,” whereby countries with weak institutional structures and problematic political systems borrow in order to avoid difficult fiscal decisions but subsequently find themselves unwilling or unable to repay. Debt intolerance, it should be noted, is by no means a recent phenomenon: the historical record shows repeated defaults by several European countries before 1900 and, in some instances, well into the twentieth century.

• Item Type: MPRA Paper
• Language: English
• Keywords: debt, default, ratings, credit. crises
• Subjects: F - International Economics > F3 - International Finance > F34 - International Lending and Debt Problems; F - International Economics > F2 - International Factor Movements and International Business > F21 - International Investment ; Long-Term Capital Movements; F - International Economics > F3 - International Finance > F33 - International Monetary Arrangements and Institutions

References

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