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ИД «Финансы и кредит»






Finance and Credit

The non-financial sector debt: Global trends

Vol. 27, Iss. 1, JANUARY 2021

Received: 12 November 2020

Received in revised form: 26 November 2020

Accepted: 10 December 2020

Available online: 28 January 2021

Subject Heading: Financial system

JEL Classification: E65, F34, F43, H6, O23

Pages: 41–62


Konstantin V. KRINICHANSKII Financial University under Government of Russian Federation, Moscow, Russian Federation


Subject. This article examines the non-financial sector debt ratio relative to the GDP of emerging and developed market economies.
Objectives. The article aims to find out what institutional units show debt growth or reduction, what causes and conditions prevent debt decline or lead to its growth in different countries and sectors, and highlight the foundations of public policy in this area.
Methods. For the study, I used a cross-country comparative analysis, grouping method, and graphical and trend analyses. The study covers 43 market economies, including 26 developed and 17 emerging ones. The time period is from Q4 2001 to Q4 2019.
Results. The article identifies and describes the structural debt changes that have taken place since 2008, which include a reduction in private sector leverage and rising public sector debt in developed market economies, and accelerated growth in the non-financial corporations and households' debt in emerging market economies.
Conclusions and Relevance. Given the different conditions of access to the capital market and the institutional differences between developed and emerging market economies, different approaches to debt management are needed. The identified trends are important to develop non-financial sector debt management policies, including both fiscal and monetary policies.

Keywords: non-financial sector, public debt, non-financial entities, household debt, economic policy


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