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Emerging Market Sovereign Debt in the Aftermath of the Pandemic

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  • Kenneth Rogoff

Abstract

For emerging markets, fiscal space is a very real constraint that can surface under a variety of circumstances, including rising world interest rates, falling commodity prices, or a global recession. Some emerging markets, and the majority of low-income developing economies, are already in debt distress or default. Near-term, making sure that troubled debtor countries are aware of the full menu of options, including heterodox strategies such as default, is important. Longer-term, a rethink of the Bretton Woods financial institutions to incorporate a greater emphasis on outright grants instead of loans, makes more sense than ever.

Suggested Citation

  • Kenneth Rogoff, 2022. "Emerging Market Sovereign Debt in the Aftermath of the Pandemic," Journal of Economic Perspectives, American Economic Association, vol. 36(4), pages 147-166, Fall.
    • Handle: RePEc:aea:jecper:v:36:y:2022:i:4:p:147-66
    DOI: 10.1257/jep.36.4.147
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    References listed on IDEAS

    as
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    Cited by:

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    2. Ha, Jongrim & Kose, M. Ayhan & Ohnsorge, Franziska & Yilmazkuday, Hakan, 2023. "What Explains Global Inflation," CEPR Discussion Papers 18690, C.E.P.R. Discussion Papers.
    3. Rogoff, Kenneth, 2023. "The case for a World Carbon Bank," Journal of Policy Modeling, Elsevier, vol. 45(4), pages 693-701.
    4. Harrison, Andre & Reed, Robert R., 2023. "International capital flows, liquidity risk, and monetary policy," Journal of Macroeconomics, Elsevier, vol. 77(C).

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    More about this item

    JEL classification:

    • E23 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Production
    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy; Modern Monetary Theory
    • F34 - International Economics - - International Finance - - - International Lending and Debt Problems
    • G01 - Financial Economics - - General - - - Financial Crises
    • H63 - Public Economics - - National Budget, Deficit, and Debt - - - Debt; Debt Management; Sovereign Debt
    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior
    • O23 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Fiscal and Monetary Policy in Development

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