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Reducing Public Debt in the Aftermath of the Financial Crisis: Renewing with Financial Repression

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  • Halep Maria

    (Doctoral School ASE Bucarest – International Business)

Abstract

Since the 2008 financial crisis burst, public finance accounts in developed economies have been continuously deteriorating; both fiscal and monetary policies are reaching their limits, while unemployment rates are soaring and GDP growth is fragile, if not inexistent. The aim of this article is to consider the options at the hand of developed economies for reducing the public debt burden. Section 1 draws a picture on the general economic outlook in the developed economies and emerging countries. Section 2 considers the different ways in which a country’s debt burden can be diminished. Section 3 defines the concept of debt financial repression and its main features. Section 4 focuses on researchers’ work on historical data, to measure the debt erosion after WW2 and section 5 analyses the current economic situation and tries to assess whether the outlook is similar and whether a similar eroding process is worth considering. Section 6 concludes.

Suggested Citation

  • Halep Maria, 2013. "Reducing Public Debt in the Aftermath of the Financial Crisis: Renewing with Financial Repression," Ovidius University Annals, Economic Sciences Series, Ovidius University of Constantza, Faculty of Economic Sciences, vol. 0(1), pages 37-42, May.
    • Handle: RePEc:ovi:oviste:v:xii:y:2012:i:1:p:37-42
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    References listed on IDEAS

    as
    1. Reinhart, C. M., 2012. "The return of financial repression," Financial Stability Review, Banque de France, issue 16, pages 37-48, April.
    2. Carmen M. Reinhart & M. Belen Sbrancia1, 2015. "The liquidation of government debt," Economic Policy, CEPR, CESifo, Sciences Po;CES;MSH, vol. 30(82), pages 291-333.
    3. Anonymous, 1949. "Council of Europe," International Organization, Cambridge University Press, vol. 3(4), pages 729-732, November.
    4. Anonymous, 1949. "Council of Europe," International Organization, Cambridge University Press, vol. 3(3), pages 551-552, August.
    5. Reinhart, Carmen & Kirkegaard, Jacob & Sbrancia, Belen, 2011. "Financial repression redux," MPRA Paper 31641, University Library of Munich, Germany.
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    More about this item

    Keywords

    debt liquidation; financial repression; public debt; macro prudential policies; real interest rates;
    All these keywords.

    JEL classification:

    • E4 - Macroeconomics and Monetary Economics - - Money and Interest Rates
    • E6 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook
    • F4 - International Economics - - Macroeconomic Aspects of International Trade and Finance
    • H6 - Public Economics - - National Budget, Deficit, and Debt
    • N10 - Economic History - - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations - - - General, International, or Comparative

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