The Literature Interview On Sovereign Debt Crisis

The sovereign debt crisis refers to a country unable to pay its foreign debt and economic phenomenon of sovereign default occurs. Sovereign debt is the government of a country’s own national credit as a guarantee of debt incurred. Including internal borrowing and external borrowing. The internal debt is the main point to domestic residents to borrow. External debt is the main point to the external community, through the issuance of bonds and other ways of borrowing caused by debt. If a country can not be punctual discharge of sovereign debt debt covenants due to the accumulated debt of long-term fiscal deficit to reach a certain level of a country’s economic output, or a long period of poor economic development, which led in a certain period of time, result in creditors losses, it is called the sovereign debt crisis. In short, the sovereign debt crisis refers to a country unable to pay its foreign debt and economic phenomenon of sovereign default occurs. In the summer of2009, the Greek sovereign debt crisis set off another round of crisis after the2007subprime crisis has seriously affected the recovery of world economy.Sovereign debt crises continue to occur from the19th century on the recent Latin American sovereign debt crisis (1980s), the Mexican economic crisis (1994). But a review of the history, it is not difficult to find past sovereign debt crises tend to occur in developing countries with poor economic foundation, and this happened in the developed European countries. In addition, the European sovereign debt crises and sovereign debt crisis, there are many new features in this article are to do their analysis and interpretation.Greek sovereign debt crises, for example, the occurrence of the crisis, the development of the spread of the whole process described in detail, and the Greek sovereign debt crisis as the representative of the background and reasons of the European sovereign debt crisis has made a detailed introduction and Analysis.A lot of reading literature on the basis of this paper, the various stages of the sovereign debt crisis of the relevant theory collation and analysis, including the theory of optimal debt level of the need for borrowing and breach of contract economics theory, sovereignty debt, sovereignty the debt crisis of the early warning and monitoring theory, after the sovereign debt crisis to pass theory. In addition to the above theory, taking into account is of great significance for China’s national conditions, also introduced from or liabilities analysis point of view of government debt and sovereign debt crises or liabilities of the theory and the theory of Iceland and Dubai sovereign debt crisis analyzed.In addition, taking into account the domestic government debt to use more qualitative analysis, not yet using the latest theoretical models and measurement instruments to study the government debt, Therefore, this article from the article published in1985, Hamilton and Flavin, the theoretical framework, the development and changes, as well as future generations of their criticism of the theory are described. At the end of the part, the article also describes the latest of Afonso et al (2011) research on government finance.