Slow Moving Debt Crises
We study slow moving debt crises: self-fulfilling equilibria in which high interest rates, due to the fear of a future default, lead to a gradual but faster accumulation of debt, ultimately validating investors' fear. We show that slow moving crises arise in a variety of settings, both when fis...
| Main Authors: | , |
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| Other Authors: | , |
| Format: | Article |
| Language: | English |
| Published: |
American Economic Association,
2020-08-27T17:42:44Z.
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| Subjects: | |
| Online Access: | Get fulltext |