From financial crash to debt crisis

Carmen M Reinhart interviewed by Romesh Vaitilingam, 9 Apr 2010

Carmen Reinhart of the University of Maryland talks to Romesh Vaitilingam about the sequencing of the cycle of debt build-ups – from private debt surges to banking crises to sovereign debt crises – and the four ‘deadly D’s’ that once again threaten many governments as a consequence of the current crisis – deficits, debt, downgrade and default. The interview was recorded at the Royal Economic Society’s annual conference at the University of Surrey in March 2010.


Unfortunately the file could not be found.

Open in a pop-up window Open in a pop-up window


Download MP3 File (8.1MB)



See Also

Related research here and here.


View Transcript

Topics: Financial markets, Global crisis, Macroeconomic policy
Tags: banking crises, debt, sovereign debt

Privatisation and debt: Lessons from Greece’s fiasco

Paolo Manasse, 31 January 2014



In the midst of the European debt crisis, it is tempting to think that high-debt countries could alleviate the recessionary impact of the budget-consolidation process by selling (poorly managed) assets and stakes in their state-owned enterprises (SOEs), and by using the proceeds to buy back their debts (Hope 2011).

Topics: Financial markets, International finance
Tags: debt, European sovereign debt crisis, Greece, privatisation, sovereign debt

Why hasn’t Japan’s massive government debt wreaked havoc (yet)?

Charles Yuji Horioka, Takaaki Nomoto, Akiko Terada-Hagiwara, 21 January 2014



The potential sovereign debt crisis in Japan looks even grimmer than those in the Eurozone economies if one looks only at the gross general government debt-to-GDP ratio.

Topics: Financial markets, International finance
Tags: fiscal sustainability, sovereign debt

Why fiscal sustainability matters

Willem Buiter, 10 January 2014



Does fiscal sustainability matter only when there is a fiscal house on fire, as was the case with the Greek sovereign insolvency in 2011–12? Far from it.

Topics: Financial markets, Global crisis, International finance, Macroeconomic policy
Tags: balance-sheet recession, banking, banking union, banks, capital flows, credit booms, Currency wars, emerging markets, eurozone, Eurozone crisis, financial crisis, fiscal policy, fiscal sustainability, global financial crisis, sovereign debt, sovereign debt restructuring

The ghost of Deauville

Ashoka Mody, 7 January 2014



The aversion to debt restructuring in the Eurozone has been remarkable, even though public debt ratios in several countries are well above the IMF-identified critical debt overhang threshold of 100% of GDP (IMF 2012). By early 2010, some recognised the urgency of restructuring Greek public debt (Calomiris 2010).

Topics: Financial markets, International finance
Tags: Deauville, eurozone, Eurozone crisis, financial contagion, sovereign debt, sovereign debt restructuring

Joint liability in international lending: A proposal for amending the Treaty of Lisbon

Kaushik Basu, Joseph Stiglitz, 2 January 2014



The sovereign debt crisis exposed weaknesses in the Eurozone’s financial architecture that may not have been fully anticipated when the founding treaties of the Eurozone were drafted. Key among these weak spots are the provisions of the Treaty of Lisbon which regulate intergovernmental debt obligations and preclude direct financing of sovereigns by the ECB.

Topics: EU institutions, International finance
Tags: eurozone, Eurozone crisis, Lisbon Treaty, Maastricht Treaty, moral hazard, no-bailout clause, sovereign debt

Sovereign default and state-contingent debt

Martin Brooke, Rhys Mendes, Alex Pienkowski, Eric Santor, 12 December 2013



For the better part of the past six decades sovereign default has been widely viewed as an emerging-market economy (EME) phenomenon. Recent events, however, have changed this perception. In April 2012 the Greek government restructured €200bn of its sovereign debt, imposing net present value (NPV) losses of 59-65% on its creditors (Zettelmeyer et al., 2013).

Topics: Financial markets
Tags: GDP-linked bonds, sovereign cocos, sovereign debt, state-contingent debt

A fiscal perspective on EU sovereign credit ratings: Did the credit-rating agencies get them right?

Mike Wickens, Vito Polito, 30 October 2013



The financial crisis has put EU and US sovereign credit ratings centre-stage in a way not seen before. Previously, it was taken for granted that all Eurozone governments could borrow at more or less the same risk-free rate as Germany, and that Germany, the UK, and the US would be rated triple-A.

Topics: Global crisis, International finance
Tags: credit-rating agencies, Eurozone crisis, sovereign debt

War of attrition between the parliament and the executive in 1575

Carlos Álvarez-Nogal, Christophe Chamley, 21 October 2013



The recent showdown between the parliament and the executive in the US began when a faction in the Republican Party tried to stop the implementation of the healthcare law of President Obama. They refused to raise the legislatively determined ceiling on the federal public debt – a ceiling that has to be raised with the growth of the economy.

Topics: Economic history, Financial markets
Tags: credit freeze, financial crises, sovereign debt, Spain

The impact of sovereign-debt exposure on bank lending: Evidence from the European debt crisis

Alexander Popov, Neeltje van Horen, 6 July 2013



The sovereign-debt crisis which erupted in the Eurozone in 2010 has sent ripples through the global banking system and prompted interventions by governments and central banks on a scale comparable to the programs implemented during the financial crisis of 2008-09.

Topics: Financial markets, International finance
Tags: bank exposure, eurozone, sovereign debt

Vox eBooks