Global Economy - A World of debt 2015
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This is corroborated by a considerable body of academic research. In This Time s Different, the account of humankind’s lamentable confidence in thinking that financial crises are a thing of the past, professors Carmen Reinhart and Ken-neth Rogoff calculated that the average external debt-to-GDP ratio of countries that defaulted in 1970-2008 was just 69.3 percent. This ratio does not include local debts. These have proven less problematic as governments can simply print the money they need to service these liabilities, often leading to inflation but not a direct, “hard” default.
