Debt crises
| Learning Objectives: Understand the causes of a sovereign debt crisis. Understand the role international agencies play in managing a debt crisis. |
Although I use Chapter 3 as the pre reading for this class, I highly recommend the full book: “And the Money Kept Rolling In”. Here’s The Economist’s summary.
Case: Blustein, P., “And the Money Kept Rolling In” Public Affairs, 2005 (pp.39-60)
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A 2016 episode of the podcast Planet Money looked at sovereign debt crises, and is well worth a listen. The title was “A Hedge Fund, A Country, And A Big Sailboat“.
To understand the dynamics of a sovereign debt crisis, use this model from The Economist.
| Instructor Resource: “Argentina: What Happened Next?” January 2014 |
The key goal for monetary authorities is credibility: [Credibility flashcard]
What constitutes an optimal currency areas? [Optimal Currency Areas flashcard]
| These resources form part of my Managerial Economics course map. You can watch the full YouTube playlist here. This page ties into Chapter 10 of ‘Markets for Managers’. |