Relationship between Financial Crises and High Levels of Foreign Debt-from the 19th to 20th Centuries
- https://doi.org/10.2991/aebmr.k.220307.311How to use a DOI?
- developing countries; with high level of external debt; case study; high foreign debt and possibility of financial crisis are positively related
The end of the 19th century and the beginning of the 20th century were the first era of globalization. At this time when global liquidity is high, foreign debt can provide a large amount of funds constantly, and the interest is relatively low, so it prevails among many countries. However, the high level of foreign debt is considered to be the main causation of the financial crises in most countries in the late 19th and early 20th centuries. External debts and borrowing in foreign currency can cause financial fragility and instability hence creating conditions for costly financial crises (Bordo and Meissner, 2008). This paper adopts empirical evidences to study the causal relationship between foreign debt and financial crises from 19th to 20th centuries.
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Cite this article
TY - CONF AU - Kaiwen Shen PY - 2022 DA - 2022/03/26 TI - Relationship between Financial Crises and High Levels of Foreign Debt-from the 19th to 20th Centuries BT - Proceedings of the 2022 7th International Conference on Financial Innovation and Economic Development (ICFIED 2022) PB - Atlantis Press SP - 1894 EP - 1898 SN - 2352-5428 UR - https://doi.org/10.2991/aebmr.k.220307.311 DO - https://doi.org/10.2991/aebmr.k.220307.311 ID - Shen2022 ER -