Post COVID-19 exit strategies and emerging markets economic challenges

Joshua Aizenman, Hiro Ito

Research output: Contribution to journalArticlepeer-review

3 Scopus citations

Abstract

We study emerging markets' 1980s lost growth decade, triggered by the massive reversal of the snowball effect in the US during 1974–1984, finding that higher flow costs of servicing debt overhang explain the dramatic decline in growth rates of exposed emerging markets. We also show how lowering the US cost of servicing its public debt has been associated with higher US, Japan, and Western Europe real output growth rates during the post WWII recovery decades, 1946–1956, and validate that fiscal adjustments of large countries have strong growth and volatility spillovers effects on exposed emerging markets and developing countries.

Original languageEnglish
Pages (from-to)1-34
Number of pages34
JournalReview of International Economics
Volume31
Issue number1
DOIs
StatePublished - 1 Feb 2023
Externally publishedYes

Keywords

  • COVID-19
  • financial crisis
  • globalization

ASJC Scopus subject areas

  • Geography, Planning and Development
  • Development

Fingerprint

Dive into the research topics of 'Post COVID-19 exit strategies and emerging markets economic challenges'. Together they form a unique fingerprint.

Cite this