Category Archive: Indicators of sovereign debt default

May 13

The Reinhart-Rogoff Controversy and predictors of sovereign debt default

There has been much debate in the financial press recently about the implications of new evidence that seems to contradict the Reinhart-Rogoff rule. The strong version of the rule states that, once the ratio of national debt to GDP rises above 90%, it has a significant negative impact on the rate of economic growth. The …

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