If there is one common theme to the vast range of crises we consider in this book, it is that excessive debt accumulation, whether it be by the government, banks, corporations, or consumers, often poses greater systemic risks than it seems during a boom. xxv
Although private debt certainly plays a key role in many crises, government debt is far more often the underlying problem across the wide range of financial crises we examine. xxxiii
Severe financial crises rarely occur in isolation. Rather than being the trigger of recession, they are more often an amplification mechanism: a reversal of fortunes in output growth leads to a string of defaults on bank loans, forcing a pullback on other bank lending, which leads to further output falls and repayment problems, and so on. 145
[I]nflation has long been the weapon of choice in sovereign defaults of domestic debt and, where possible, on international debt. 175
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