This is a link to the report that Bill Gross of PIMCO makes reference to in his latest commentary called “The Caine Mutiny (Part 2)“.
Abstract:
Historically, periods of high indebtedness have been associated with a rising incidence of default or restructuring of public and private debts. A subtle type of debt restructuring takes the form of “financial repression.” Financial repression includes directed lending to government by captive domestic audiences (such as pension funds), explicit or implicit caps on interest rates, regulation of cross-border capital movements, and (generally) a tighter connection between government and banks.
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Carmen M. Reinhart is the Dennis Weatherstone Senior Fellow at the Peterson Institute for International Economics. She was previously professor of economics and director of the Center for International Economics at the University of Maryland. She was earlier chief economist and vice president at the investment bank Bear Stearns in the 1980s and spent several years at the International Monetary Fund. She is a research associate at the National Bureau of Economic Research, research fellow at the Centre for Economic Policy Research, and member of the Congressional Budget Office Panel of Economic Advisers and Council on Foreign Relations. She is the recipient of the 2010 TIAA-CREF Paul A. Samuelson Award. Her best-selling book entitled This Time is Different: Eight Centuries of Financial Folly, which has been translated into 13 languages, documents the striking similarities of the recurring booms and busts that have characterized financial history. M. Belen Sbrancia is a research assistant and PhD candidate at the University of Maryland.
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This is a link to the report that Bill Gross of PIMCO makes reference to in his latest commentary called “The Caine Mutiny (Part 2)“.
