Default, rescheduling and inflation : debt crisis in Spain during the 19th and 20th centuries

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dc.contributor.author Comín, Francisco
dc.contributor.editor Universidad Carlos III de Madrid. Departamento de Historia Económica e Instituciones
dc.date.accessioned 2012-07-03T15:13:02Z
dc.date.available 2012-07-03T15:13:02Z
dc.date.issued 2012-06
dc.identifier.uri http://hdl.handle.net/10016/14797
dc.description.abstract This article provides a historical overview of the factors leading up to debt crises and the default methods used by the governments to solve them, ranging from repudiation and restructuring to inflation tax and financial repression. The paper also analyses the Spanish governments’ graduation to responsible public debt management under the democracy and the last debt crisis starting in 2010. After analysing the evolution of the outstanding public debt, the budget deficits, the Spanish economy’s ability to borrow, the central government’s debt affordability and the profile of the sovereign debt the article concludes that the Spanish case confirms the main hypothesis of Reinhart and Rogoff (2009) about international debt crisis, regarding to: short term borrowing enhanced the risk of a debt crisis; insolvency problems arose when the governments were unwilling or unable to repay the debt; debt crisis took place after large capital inflows; most outright defaults ended up being partial defaults; sovereign debt level became unsustainable when it rose above 60-90 % of GDP; default trough inflation became commonplace when fiat money displaced coinage; financial repression was used as a subtle type of debt restructuring; defaults endangered the creditworthiness of Spanish Finance Ministry and forced disciplined fiscal policies
dc.format.mimetype application/pdf
dc.language.iso eng
dc.relation.ispartofseries Working Papers in Economic History
dc.relation.ispartofseries 12-06
dc.rights Atribución-NoComercial-SinDerivadas 3.0 España
dc.rights.uri http://creativecommons.org/licenses/by-nc-nd/3.0/es/
dc.subject.other Public debt
dc.subject.other Default
dc.subject.other Restructuring
dc.subject.other Inflation tax
dc.subject.other Financial repression
dc.subject.other Fiscal policy
dc.title Default, rescheduling and inflation : debt crisis in Spain during the 19th and 20th centuries
dc.type workingPaper
dc.subject.jel E31
dc.subject.jel E4
dc.subject.jel E6
dc.subject.jel F3
dc.subject.jel F4
dc.subject.jel H6
dc.subject.jel N10
dc.subject.jel N23
dc.subject.jel N43
dc.subject.jel H63
dc.subject.jel F34
dc.subject.eciencia Economía
dc.subject.eciencia Historia
dc.rights.accessRights openAccess
dc.type.version submitedVersion
dc.identifier.repec wp12-06
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