Creating a Framework for Sovereign Debt Restructuring That Works

MARTIN GUZMAN; JOSEPH STIGLITZ

Too Little, Too Late: The Quest to Resolve Sovereign Debt Crises

Columbia University Press

Año: 2016; p. 3 - 32

Debt matters. In recessions, high uncertainty discourages private spending, weakening demand. Resolving the problem of insufficient demand requires expansionary macroeconomic policies. But ?excessive? public debt may constrain the capacity for running expansionary policies.¹ Evidence shows that high public debt also exacerbates the effects of private sector deleveraging after crises, leading to deeper and more prolonged economic depressions.