Journal Article
Private credit and public debt in financial crises
Abstract: Recovery from a recession triggered by a financial crisis is greatly influenced by the government?s fiscal position. A financial crisis puts considerable stress on the government?s budget, sometimes triggering attacks on public debt. Historical analysis shows that a private credit boom raises the odds of a financial crisis. Entering such a crisis with a swollen public debt may limit the government?s ability to respond and can result in a considerably slower recovery.
Access Documents
File(s):
File format is application/pdf
http://www.frbsf.org/economic-research/publications/economic-letter/2014/march/private-credit-public-debt-financial-crisis/el2014-07.pdf
Description: Full text
Bibliographic Information
Provider: Federal Reserve Bank of San Francisco
Part of Series: FRBSF Economic Letter
Publication Date: 2014
Order Number: 07