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International Government Debt

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  • Ugo Panizza
  • Federico Sturzenegger
  • Jeromin Zettelmeyer

Abstract

This paper presents a non-technical survey of the modern literature on international government debt. In doing so, it aims to match predictions made by theoretical models with the existing empirical evidence and to identify the models that best explain the real world experience of sovereign debt and sovereign default. The paper starts by describing how the levels and structure of international government debt have evolved during the last 40 years. Next, it reviews economic theories of sovereign debt, whose defining characteristic is the impossibility of enforcing repayment and discusses recent attempts to reconcile the theory with the evidence. Finally, the paper discusses the role of debt structure and presents two alternative views on the relationship between debt structure and crises.

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Bibliographic Info

Paper provided by Universidad Torcuato Di Tella in its series Business School Working Papers with number 2010-03.

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Length: 26 pages
Date of creation: 2010
Date of revision:
Handle: RePEc:udt:wpbsdt:2010-03

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Cited by:
  1. André Nassif & Carmem Feijó & Eliane Araújo, 2011. "The Long-Term “Optimal” Real Exchange Rate And The Currency Overvaluation Trend In Open Emerging Economies: The Case Of Brazil," UNCTAD Discussion Papers 206, United Nations Conference on Trade and Development.
  2. Peter Bofinger, 2011. "The Scope For Foreign Exchange Market Interventions," UNCTAD Discussion Papers 204, United Nations Conference on Trade and Development.
  3. Javier Lindenboim & Damián Kennedy & Juan M. Graña, 2011. "Share Of Labour Compensation And Aggregate Demand – Discussions Towards A Growth Strategy," UNCTAD Discussion Papers 203, United Nations Conference on Trade and Development.
  4. Pilar Fajarnes, 2011. "An Overview Of Major Sources Of Data And Analyses Relating To Physical Fundamentals In International Commodity Markets," UNCTAD Discussion Papers 202, United Nations Conference on Trade and Development.
  5. Jörg Mayer, 2010. "Global Rebalancing: Effects On Trade Flows And Employment," UNCTAD Discussion Papers 200, United Nations Conference on Trade and Development.

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