Abstract
The 2007–2009 global economic and financial crisis led to a sharp increase in public debt across various parts of the world, especially in advanced countries. This has heightened concerns about fiscal sustainability and their broader economic and financial market consequences. In particular, many believe that public debt has hit levels that are unsustainable and could lead to sovereign default risks. The fact that the peripheral economies of Eurozone did indeed face the risk of sovereign debt defaults starting around late 2009 appeared to vindicate this sense of apprehension.
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Chowdhury, A., Islam, I. (2013). Fiscal Consolidation: Issues and Evidence. In: Islam, I., Kucera, D. (eds) Beyond Macroeconomic Stability. Advances in Labour Studies. Palgrave Macmillan, London. https://doi.org/10.1057/9781137379252_3
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DOI: https://doi.org/10.1057/9781137379252_3
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