The Evidence and Impact of Financial Globalization

Chapter 16

International Government Debt

U. Panizza*†, F. Sturzenegger^‡ and J. Zettelmeyer^§

^*United Nations Conference on Trade and Development, Geneva, Switzerland

^†Graduate Institute, Geneva, Switzerland

^‡Universidad Torcuato di Tella, Buenos Aires, Argentina

^§European Bank for Reconstruction and Development, London, UK

Outline

Introduction

Trends

Looking Beyond Averages

The Theory of International Government Debt

Evidence on International Borrowing and Default

Debt Structure and Debt Crises

Conclusions

Acknowledgment

Glossary

References

Introduction

The objective of this chapter is to present a nontechnical survey of the modern literature on international government debt. In doing so, it aims to match predictions made by theoretical models ...