Dec 13, 2011

How Costly are Debt Crises?

From a new paper by Furceri and  Zdzienicka 
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. 

No comments:

Post a Comment