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How Costly Are Debt Crises?

The aim of this paper is to assess the short- and medium-term impact of debt crises on GDP. Using an unbalanced panel of 154 countries from 1970 to 2008, the paper shows that debt crises produce significant and long-lasting output losses, reducing output by about 10 percent after eight years. The re...

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Bibliographic Details
Main Author: Furceri, Davide
Other Authors: Zdzienicka, Aleksandra
Format: eBook
Language:English
Published: Washington, D.C. International Monetary Fund 2011
Series:IMF Working Papers
Subjects:
Economic & Financial Crises & Disasters
Public Debt
Public Finance & Taxation
Financial Crises
Debt Management
Debts, Public
Production
Debt
Exports And Imports
International Lending And Debt Problems
International Economics
External Debt
Debts, External
Sovereign Debt
Macroeconomics: Production
Foreign Exchange
Currency Crises
Macroeconomics
Economic Theory
Financial Risk Management
Public Finance
Debt Default
Production Growth
Costa Rica
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Collection: International Monetary Fund - Collection details see MPG.ReNa
Description
Summary:The aim of this paper is to assess the short- and medium-term impact of debt crises on GDP. Using an unbalanced panel of 154 countries from 1970 to 2008, the paper shows that debt crises produce significant and long-lasting output losses, reducing output by about 10 percent after eight years. The results also suggest that debt crises tend to be more detrimental than banking and currency crises. The significance of the results is robust to different specifications, identification and endogeneity checks, and datasets
Physical Description:30 pages
ISBN:9781463926618

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