Working Paper

Can This Time Be Different? Policy Options in Times of Rising Debt

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collection.link.5
https://openknowledge.worldbank.org/handle/10986/9
collection.name.5
Policy Research Working Papers
dc.contributor.author
Kose, M. Ayhan
dc.contributor.author
Nagle, Peter S.O
dc.contributor.author
Ohnsorge, Franziska L.
dc.contributor.author
Sugawara, Naotaka
dc.date.accessioned
2020-03-12T15:54:03Z
dc.date.available
2020-03-12T15:54:03Z
dc.date.issued
2020-03
dc.date.lastModified
2020-12-07T08:41:46Z
dc.description.abstract
Episodes of debt accumulation have been a recurrent feature of the global economy over the past fifty years. Since 2010, emerging and developing economies have experienced another wave of historically large and rapid debt accumulation. Similar past debt buildups have often ended in widespread financial crises in these economies. This paper examines the factors that are likely to determine the outcome of the most recent debt wave, and considers policy options to help reduce the likelihood that it ends again in widespread crises. It reports two main results. First, the rapid increase in debt has made emerging and developing economies more vulnerable to shifts in market sentiment, notwithstanding historically low global interest rates. Second, policy options are available to lower the likelihood of financial crises, and to help manage the adverse impacts of crises when they do occur. These include sound debt management, strong monetary and fiscal frameworks, and robust bank supervision and regulation. The post-crisis debt buildup has coincided with a period of subdued growth as well as the emergence of non-traditional creditors. As a result, policy priorities also need to ensure that debt is spent on productive purposes to improve growth prospects and that all debt-related transactions are transparently reported.
en
dc.identifier
http://documents.worldbank.org/curated/en/916221583844322496/Can-This-Time-Be-Different-Policy-Options-in-Times-of-Rising-Debt
dc.identifier.uri
http://hdl.handle.net/10986/33427
dc.language
English
dc.publisher
World Bank, Washington, DC
dc.relation.ispartofseries
Policy Research Working Paper;No. 9178
dc.rights
CC BY 3.0 IGO
dc.rights.holder
World Bank
dc.rights.uri
http://creativecommons.org/licenses/by/3.0/igo
dc.subject
FINANCIAL CRISIS
dc.subject
CURRENCY CRISIS
dc.subject
DEBT CRISIS
dc.subject
DEBT SUSTAINABILITY
dc.subject
PUBLIC DEBT
dc.subject
PRIVATE DEBT
dc.subject
EXTERNAL DEBT
dc.subject
DEBT WAVE
dc.subject
EMERGING MARKET ECONOMIES
dc.subject
PUBLIC FINANCIAL MANAGEMENT
dc.subject
FISCAL POLICY
dc.subject
MONETARY POLICY
dc.title
Can This Time Be Different? Policy Options in Times of Rising Debt
en
dc.type
Working Paper
en
okr.crossref.title
Can This Time Be Different? Policy Options in Times of Rising Debt
okr.date.disclosure
2020-03-10
okr.doctype
Publications & Research
okr.doctype
Publications & Research :: Policy Research Working Paper
okr.docurl
http://documents.worldbank.org/curated/en/916221583844322496/Can-This-Time-Be-Different-Policy-Options-in-Times-of-Rising-Debt
okr.googlescholar.linkpresent
yes
okr.identifier.doi
10.1596/1813-9450-9178
okr.identifier.externaldocumentum
090224b0876da764_1_0
okr.identifier.internaldocumentum
31854792
okr.identifier.report
WPS9178
okr.imported
true
en
okr.language.supported
en
okr.pdfurl
http://documents.worldbank.org/curated/en/916221583844322496/pdf/Can-This-Time-Be-Different-Policy-Options-in-Times-of-Rising-Debt.pdf
en
okr.topic
Public Sector Development :: Public Financial Management
okr.topic
Finance and Financial Sector Development :: Debt Markets
okr.topic
Finance and Financial Sector Development :: Strategic Debt Management
okr.topic
International Economics and Trade :: External Debt
okr.topic
Macroeconomics and Economic Growth :: Economic Adjustment and Lending
okr.topic
Macroeconomics and Economic Growth :: Economic Policy, Institutions and Governance
okr.topic
Macroeconomics and Economic Growth :: Fiscal & Monetary Policy
okr.unit
Prospects Group

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