|Case: Blustein, P., 2005, “And the Money Kept Rolling In” Public Affairs (pp.39-60)
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.
Additional Reading: Escolano, J., “A Practical Guide to Public Debt Dynamics, Fiscal Sustainability, and Cyclical Adjustment of Budgetary Aggregates“, IMF, January 2010
|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]
This page ties into Chapter 10 of Economics: A Complete Guide for Business
|Learning Objectives: Understand the causes of a sovereign debt crisis. Understand the role international agencies play in managing a debt crisis.|