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Public Debt Through the Ages

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  • Barry J. Eichengreen
  • Asmaa A ElGanainy
  • Rui Pedro Esteves
  • Kris James Mitchener

Abstract

We consider public debt from a long-term historical perspective, showing how the purposes for which governments borrow have evolved over time. Periods when debt-to-GDP ratios rose explosively as a result of wars, depressions and financial crises also have a long history. Many of these episodes resulted in debt-management problems resolved through debasements and restructurings. Less widely appreciated are successful debt consolidation episodes, instances in which governments inheriting heavy debts ran primary surpluses for long periods in order to reduce those burdens to sustainable levels. We analyze the economic and political circumstances that made these successful debt consolidation episodes possible.

Suggested Citation

  • Barry J. Eichengreen & Asmaa A ElGanainy & Rui Pedro Esteves & Kris James Mitchener, 2019. "Public Debt Through the Ages," IMF Working Papers 19/6, International Monetary Fund.
  • Handle: RePEc:imf:imfwpa:19/6
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    More about this item

    Keywords

    Sovereign debt; External debt; Public debt; Debt burden; Cost of living; National income; Financial crises; Economic integration; Economic growth; Soveriegn Debt; Debt History; Soveriegn Debt Crises; Sovereign Debt Composition; General; International; or Comparative; th century; debt ratio; Rogoff; advanced economy; SFA;

    JEL classification:

    • F3 - International Economics - - International Finance
    • H6 - Public Economics - - National Budget, Deficit, and Debt
    • N1 - Economic History - - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations

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