Chayu Damsinghe
chayudamsinghe.bsky.social
Chayu Damsinghe
@chayudamsinghe.bsky.social
Macroeconomics, sovereign debt, and complexity with a narrative and plumbing focus.
Countries going through default know this well - but also show additional complications.

Using the example of SL to illustrate
1/2
Robin Wigglesworth notes the there is an upside to inflation: "a 30 percentage point reduction in global debt-to-GDP in just four years".

This is a pretty substantial decline, but of course it is the result of an implicit wealth transfer.

www.ft.com/content/2988...
The positive flipside of rampant inflation
The biggest debt reduction scheme in history?
www.ft.com
December 5, 2024 at 3:42 AM
Sri Lanka's current fiscal adjustment is a pretty remarkable development - one of the biggest ever.

Given the broad-based nature of this, a great point to take a deep dive of this to understand fiscal adjustments in the context of sovereign debt stress.

🧵

#EconSky
November 24, 2024 at 7:49 AM
Reposted by Chayu Damsinghe
Here is a preliminary, still rudimentary starter pack on sovereign debt—very much open to any suggestions you may have for expanding it!
November 13, 2024 at 10:53 PM