Some analysts believe that the growth of nonfinancial corporate (NFC) debt originating in the emerging markets could possibly result in global systemic contagion. Economists Daniel Beltran, Keshav Garud and Aaron Rosenblum dissect the issues surrounding NFC debt in the developing countries, which has skyrocketed since 2008. Although the authors don’t offer any solutions, they spin a convincing argument that the problem may not be as bad as it seems. getAbstract recommends this scholarly offering to executives, policy experts and financial professionals.
In this summary, you will learn
- How to understand the current condition of emerging market nonfinancial corporate debt,
- Why elevated emerging market debt could pose risks to the global financial system and
- What shocks might lead to corporate debt defaults.
About the Authors
Daniel Beltran and Aaron Rosenblum are economists for the Board of Governors of the Federal Reserve System. Keshav Garud is a PhD student in economics at the University of Michigan.