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The Next (but not new) Frontier for Sovereign Default

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  • Reinhart, Carmen

Abstract

There is a view today that “this time it’s different” for emerging markets. Governments are reducing their dependence on external debt and relying more on domestic debt financing for the first time! Furthermore, emerging market governments are increasingly issuing long-term domestic debt. Indeed, often this change in government debt management patterns is taken as evidence of graduation from “serial default.” In this new world, debt crises in emerging markets will be a thing of the past, and the IMF is plainly out of business.

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  • Reinhart, Carmen, 2008. "The Next (but not new) Frontier for Sovereign Default," MPRA Paper 11865, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:11865
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    More about this item

    Keywords

    domestic debt; sovereign default;

    JEL classification:

    • E0 - Macroeconomics and Monetary Economics - - General

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