Interest-bearing loans and unpayable debts in slow-growing economies: Insights from ten historical cases

Under what circumstances are interest-bearing loans compatible with an economy without much growth? The question is becoming increasingly important given a tendency towards declining growth in industrialised economies and increasing evidence that continued incompatible environmental sustainability. Previous theoretical work suggests when compound, this results exponentially growing debts impossible to repay the absence of economic growth. We here examine ten historical cases assess support for finding. find have typically resulted unpayable these non- slow-growing economies. further identify four broad category measures prevent or alleviate problem debts, show how they been employed past. Our Appendix compiles sources debt regulation from across world over five millennia.