Image from Google Jackets

The Consequences of Banking Crises for Public Debt [electronic resource] / Davide Furceri and Aleksandra Zdzienicka = Les conséquences des crises bancaires pour la dette publique / Davide Furceri et Aleksandra Zdzienicka

By: Contributor(s): Material type: ArticleArticleSeries: OECD Economics Department Working Papers ; no.801.Publication details: Paris : OECD Publishing, 2010.Description: 28 p. ; 21 x 29.7cmOther title:
  • Les conséquences des crises bancaires pour la dette publique
Subject(s): Other classification:
  • E6
  • G1
Online resources: Abstract: The aim of this paper is to assess the consequences of banking crises for public debt. Using an unbalanced panel of 154 countries from 1980 to 2006, the paper shows that banking crises are associated with a significant and long-lasting increase in government debt. The effect is a function of the severity of the crisis. In particular, for severe crises, comparable to the most recent one in terms of output losses, banking crises are followed by a medium-term increase of about 37 percentage points in the government gross debt-to-GDP ratio. Measuring the increase in debt in this manner seems more appropriate than some of the measures used in the literature that have provided off-quoted and very large numbers for the run-up in debt. In addition, the debt ratio increased more in countries with a higher initial gross debt-to-GDP ratio and with a higher initial foreign debt-to-GDP ratio.
Tags from this library: No tags from this library for this title. Log in to add tags.
Star ratings
    Average rating: 0.0 (0 votes)
Holdings
Item type Home library Collection Call number Status Date due Barcode Item holds
Working Paper Biblioteca Digital Colección OECD OECD 5km7v02j85zp-en (Browse shelf(Opens below)) Not For Loan
Total holds: 0

The aim of this paper is to assess the consequences of banking crises for public debt. Using an unbalanced panel of 154 countries from 1980 to 2006, the paper shows that banking crises are associated with a significant and long-lasting increase in government debt. The effect is a function of the severity of the crisis. In particular, for severe crises, comparable to the most recent one in terms of output losses, banking crises are followed by a medium-term increase of about 37 percentage points in the government gross debt-to-GDP ratio. Measuring the increase in debt in this manner seems more appropriate than some of the measures used in the literature that have provided off-quoted and very large numbers for the run-up in debt. In addition, the debt ratio increased more in countries with a higher initial gross debt-to-GDP ratio and with a higher initial foreign debt-to-GDP ratio.

There are no comments on this title.

to post a comment.

Powered by Koha