The developing international debt crisis has unleashed unanticipated fears that more governments in some advanced economies may default on their sovereign debt and trigger a global financial tsunami. This article provides a primer on sovereign debt sustainability and interprets the recent experience of advanced economies in the light of a uniform approach that allows an answer to this question: What are the main factors that contribute to making a country s debt sustainable or unsustainable? (JEL E6, H12, H6).
|Pages (from-to)||197 - 220|
|Number of pages||24|
|Journal||Federal Reserve Bank of St. Louis Review|
|Publication status||Published - 2012|