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Theoretical Aspects Regarding Sovereign Debt And Indebtedness

Author

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  • MILEA, Camelia

    (Centre for Financial and Monetary Research “Victor Slavescu”, N.I.E.R., Romanian Academy, Bucharest, Romania)

Abstract

In the article, the author presents, based on the economic literature, characteristics that differentiate sovereign debt from public debt, and points out several definitions of public debt. Also, there are highlighted several features of sovereign debt that represent vulnerabilities for the national economy, and some of the causes of the sovereign debt crisis, after the crisis of sovereign debt is defined. Then, there are presented the consequences of sovereign debt default. The article also talks about sovereign debt restructuring, sovereign risk and its management, as well as about the causes and effects of the growth of the indebtedness of an economy.

Suggested Citation

  • MILEA, Camelia, 2022. "Theoretical Aspects Regarding Sovereign Debt And Indebtedness," Journal of Financial and Monetary Economics, Centre of Financial and Monetary Research "Victor Slavescu", vol. 10(1), pages 170-177, October.
    • Handle: RePEc:vls:rojfme:v:10:y:2022:i:1:p:170-177
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    References listed on IDEAS

    as
    1. Carmen M. Reinhart & Kenneth S. Rogoff, 2009. "Varieties of Crises and Their Dates," Introductory Chapters, in: This Time Is Different: Eight Centuries of Financial Folly, Princeton University Press.
    2. Fernando Broner & Alberto Martin & Jaume Ventura, 2010. "Sovereign Risk and Secondary Markets," American Economic Review, American Economic Association, vol. 100(4), pages 1523-1555, September.
    3. Carmen M. Reinhart & Kenneth S. Rogoff, 2010. "Growth in a Time of Debt," American Economic Review, American Economic Association, vol. 100(2), pages 573-578, May.
    4. Mark Aguiar & Manuel Amador, 2011. "Growth in the Shadow of Expropriation," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 126(2), pages 651-697.
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    More about this item

    Keywords

    sovereign debt; risk; crisis; effects;
    All these keywords.

    JEL classification:

    • F34 - International Economics - - International Finance - - - International Lending and Debt Problems
    • G01 - Financial Economics - - General - - - Financial Crises
    • H63 - Public Economics - - National Budget, Deficit, and Debt - - - Debt; Debt Management; Sovereign Debt

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