The first sovereign debt crisis in the EU

Jon Danielsson, Hermann Oskarsson 11 September 2012

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Today is not the first time Europe has suffered a sovereign-debt crisis. Twenty years ago another crisis happened, passing without notice except amongst those affected, i.e. the Faroe Islands. The islands accumulated too much sovereign debt, eventually getting hit by a crisis much larger in magnitude than even the worst in the ongoing European crisis. Little analysis has been published on the crisis, and almost none in English. We mostly rely on Gørtz et al. (1994) and Hansen and Joensen (2008).

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Topics:  International finance Politics and economics

Tags:  eurozone, sovereign debt crisis, Faroes

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