02144cas a2200265 a 4500 AALejournalIMF018491 230101c9999 xx r poo 0 0eng d 5.00 USD 9781484361658 1018-5941 BD-DhAAL BD-DhAAL Mbaye, Samba. Bailing Out the People? : When Private Debt Becomes Public / Samba Mbaye, Marialuz Moreno Badia, Kyungla Chae. Washington, D.C. : International Monetary Fund, 2018. 1 online resource (45 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students This paper documents a form of private sector bailout that is much more common (and yet unnoticed) than the typical bank bailout. Building on the newly-created Global Debt Database, we show that excess private debt systematically turns into higher public debt, regardless of whether the credit boom resulted in a crisis or a more orderly deleveraging process. This debt migration operates mainly through growth rather than explicit bailouts: private deleveraging weighs on activity, prompting a countercyclical government response to support economic activity. Ultimately, whether this debt substitution results in a net increase or a net decline of overall indebtedness in the economy depends on the extent of the growth slowdown during the deleveraging spell. These findings suggest that markets and policymakers should move away from looking at private and sovereign debt in silos and pay closer attention to the total stock of debt in the economy, as the line between the two tends to become blurry. Mode of access: Internet Chae, Kyungla. Moreno Badia, Marialuz. IMF Working Papers; Working Paper ; No. 2018/141 Full text available on IMF http://elibrary.imf.org/view/journals/001/2018/141/001.2018.issue-141-en.xml IMF e-Library