Journal Article

An application of conventional sovereign debt sustainability analysis to the current debt crises

Abstract: The developing international debt crisis has unleashed unanticipated fears that governments in some advanced economies may default on their sovereign debt and trigger a global financial tsunami. This article provides a primer on sovereign debt sustainability and interprets the recent experience of advanced economies in the light of a uniform approach that allows an answer to this question: What are the main factors that contribute to make a country?s debt sustainable or unsustainable?

Keywords: Debt; Financial crises;

Bibliographic Information

Provider: Federal Reserve Bank of St. Louis

Part of Series: Review

Publication Date: 2012

Volume: 94

Issue: May

Pages: 197-220