From financial crash to debt crisis

Carmen M Reinhart interviewed by Romesh Vaitilingam,

Date Published

Fri, 04/09/2010

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See Also

Related research here and here.

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Topics

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

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The economic and fiscal consequences of financial crises ‘This time is different’: eight hundred years of financial folly
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When

March 2010

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University of Surrey

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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). In addition to providing a cushion for ongoing adjustment programmes and improving solvency, privatisations are deemed to entail long-term efficiency and welfare gains by attracting foreign direct investment and managerial expertise, thus spurring competition and growth.

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