The Forgotten History of Domestic Debt

  title={The Forgotten History of Domestic Debt},
  author={C. Reinhart and Kenneth S. Rogoff},
  journal={Public Economics: National Budget},
  • C. Reinhart, Kenneth S. Rogoff
  • Published 2008
  • Economics
  • Public Economics: National Budget
  • The literature on domestic debt default is sparse, as are the data. We compile a database on public debt that spans the nineteenth century to 2010. Our findings are as follows. First, domestic debt accounts for almost two-thirds of public debt. Second, the data help to explain the puzzle of why countries default on external debts at seemingly low debt thresholds. Third, domestic debt (which is often larger than the monetary base in the run-up to high inflation) has largely been ignored in the… CONTINUE READING
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