Relationship between Financial Crises and High Levels of Foreign Debt-from the 19th to 20th Centuries

DOI

10.2991/aebmr.k.220307.311How to use a DOI?

Keywords

developing countries; with high level of external debt; case study; high foreign debt and possibility of financial crisis are positively related

Abstract

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)[3]. This paper adopts empirical evidences to study the causal relationship between foreign debt and financial crises from 19th to 20th centuries.

Copyright

© 2022 The Authors. Published by Atlantis Press International B.V.

Open Access

This is an open access article under the CC BY-NC license.

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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  - 10.2991/aebmr.k.220307.311
ID  - Shen2022
ER  -