Jorda, Oscar; Schularick, Moritz; Taylor, Alan M. - In: FRBSF Economic Letter (2014)
financial crisis puts considerable stress on the government’s budget, sometimes triggering attacks on public debt. Historical … analysis shows that a private credit boom raises the odds of a financial crisis. Entering such a crisis with a swollen public … debt may limit the government’s ability to respond and can result in a considerably slower recovery. …