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IMF Studies Sovereign Debt Restructurings, Admits Its Policy Was Responsible For Greek Depression

Gerald Celente: International Mafia Federation!

Gerald Celente: International Mafia Federation!

  • IMF Studies Sovereign Debt Restructurings, Admits Its Policy Was Responsible For Greek Depression
    by Tyler Durden, http://www.zerohedge.com
    It appears causing an economic depression and significantly deteriorating life expectancy in Greece is not enough for the IMF. In a paper published this month, the IMF seeks to study the relationship between GDP and sovereign debt restructuring using data from 1970-2010. Its main conclusion may be shocking: “the central finding of this paper is that sovereign debt restructurings with external private creditors can affect per capita GDP growth performance in the years after debt restructuring.“ And these are the people in charge of advising nations on managing their economy…

    The paper continues with the following insight “we find that there are bad and good (or “not so bad”) debt restructurings for growthGrowth generally declines following a debt restructuring operation; however, restructurings that allow countries to exit a default spell (i.e., final restructurings) lead to significant improvements in growth performance in the aftermath of the debt operation, with the effect being persistent over time.

    read more.

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July 30, 2016 - Posted by | Economics | , , , , , , , , ,

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