External and Public Debt Crises /

The recent debt crises in Europe and the U.S. states feature similar sharp increases in spreads on government debt but also show important differences. In Europe, the crisis occurred at high government indebtedness levels and had spillovers to the private sector. In the United States, state governme...

Ausführliche Beschreibung

Gespeichert in:
1. Verfasser:
Arellano, Cristina
Körperschaft:
National Bureau of Economic Research
Weitere Verfasser:
Atkeson, Andrew, Wright, Mark
Format:
Elektronisch E-Book
Sprache:
Englisch
Veröffentlicht:
Cambridge, Mass. National Bureau of Economic Research 2015.
Zusammenfassung:
The recent debt crises in Europe and the U.S. states feature similar sharp increases in spreads on government debt but also show important differences. In Europe, the crisis occurred at high government indebtedness levels and had spillovers to the private sector. In the United States, state government indebtedness was low, and the crisis had no spillovers to the private sector. We show theoretically and empirically that these different debt experiences result from the interplay between differences in the ability of governments to interfere in private external debt contracts and differences in the flexibility of state fiscal institutions.
Umfang:
1 online resource: illustrations (black and white);
Anmerkungen:
August 2015.
Schlagworte: