Crash to Debt Crisis (Reinhart and Rogoff)

From financial crash to debt crisis by Carmen M. Reinhart and Kenneth S. Rogoff. “Newly developed long historical time series on public debt, along with modern data on external debts, allow a deeper analysis of the cycles underlying serial debt and banking crises. The evidence confirms a strong link between banking crisis and sovereign default across the economic history of great many countries, advanced and emerging alike. Banking crisis are importantly preceded by rapidly rising private indebtedness. But banking crises (even those of a purely private origin) directly increase the likelihood of a sovereign defaut in their own right (according our findings) and indirectly as public debts surge.”