Sovereign Debt Sustainability For Emerging Market Economies - A Lesson From Greece For Argentina

Abstract

Sovereign Debt Crisis has been a key topic for research in International Economics as it generates persistent threat to the global economic stability, impacting both advanced and emerging market economies. This thesis presents an analysis of Greece Debt Crisis (2009-2016) with an aim of generating certain critical policy lessons for the enhancement of Sovereign Debt Sustainability in the emerging market economies, particularly for Argentina. The Greece’s experience has been critically analysed in this thesis to identify the effective debt management strategies.

With the use of a mixed methods comparative approach the author Amalgamates both qualitative and quantitative analysis using macroeconomic secondary data publicly available on the portals of the IMF, World Bank, European Central Bank and other national sources of Argentina to identify the trends on the various key macroeconomic indicators and empirically validating the key theories of international economics such as the Debt Overhang Theory and the Financial Contagion Theory.This research Identifies certain similarities and differences between Greece and Argentina and highlights the role of institutional support for a Sovereign.

Recommendations crafted out from this thesis include: stringent fiscal discipline, Comprehensive structural reforms, proactive debt management and vigilant management of the contagion risks. Thus this thesis offers data driven insights for the debt sustainability of the emerging market economies validating the core theories of international economics.