Post COVID-19 exit strategies and emerging markets economic challenges

Joshua Aizenman, Hiro Ito

Research output: Contribution to journalArticlepeer-review


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
Issue number1
StatePublished - 1 Feb 2023
Externally publishedYes


  • COVID-19
  • financial crisis
  • globalization

ASJC Scopus subject areas

  • Geography, Planning and Development
  • Development


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