“Perhaps the most robust and striking finding is that the effect of defaults is short lived, as we almost never can detect effects beyond one or two years.”
“Self-interested policymakers may try postponing defaults even at increasing economic cost, as the evidence presented in this paper suggests a clearly higher political turnover following a debt default.”
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[…] policy papers for the IMF are advocating these ideas we can only hope that these solutions are finally beginning to gain traction and momentum. We are […]