Emerging markets suffer from 'debt intolerance'—they get into trouble at what appear to be low debt levels by international standards; half of post-WWII sovereign defaults occurred at debt-to-GDP ratios that would have met the Maastricht 60% criterion, so tolerable debt thresholds can be extremely low, especially without a track record.

factualpending

Speaker

Carmen Reinhart

Evidence Quote

tolerable dead thresholds can be extremely low especially if you don't have a track record

Source

Carmen Reinhart on Financial Crises 11/23/2009EconTalk
Created: 6/15/2026, 9:20:19 AM

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