Government Debt Crises: Politics, Economics, and History

The recent European debt crisis, which coincides with the 30th anniversary of the Latin American debt crisis, has again raised important issues which have been part of the international policy debate over at least the past century. Important and still not fully understood questions include: the ability or inability of markets to monitor debt accumulation, the logic of government debt crises including the forms and patterns of speculation and policy remedies, political economy, the interaction between political models (federalism, confederalism) and crises, constitutional remedies (“golden rule”), regulatory remedies, relations with Central Banks, etc.