Title: An Application of Conventional Sovereign Debt Sustainability Analysis to the Current Debt Crises
Abstract: The developing international debt crisis has unleashed unanticipated fears that governments in some advanced economies may default on their sovereign debt and trigger a global financial tsunami. This article provides a primer on sovereign debt sustainability and interprets the recent experience of advanced economies in the light of a uniform approach that allows an answer to this question: What are the main factors that contribute to make a country’s debt sustainable or unsustainable?