Defaultable Debt, Interest Rates, and the Current Account
... functions. The latter effect arises because a positive shock to trend implies that income is higher today, but even higher tomorrow, placing a premium on the ability to access capital markets to bring forward anticipated income. In this context, the decision to default is relatively more sensitiv ...
... functions. The latter effect arises because a positive shock to trend implies that income is higher today, but even higher tomorrow, placing a premium on the ability to access capital markets to bring forward anticipated income. In this context, the decision to default is relatively more sensitiv ...
Short-Term Capital Flows
... term structure of interest rates is determined by the riskiness of di¤erent debt maturities, and these should in turn re‡ect the possibility of a crisis associated with illiquid portfolios. Consequently, the role of short term debt in generating a crisis can only be analyzed in a model of the simul ...
... term structure of interest rates is determined by the riskiness of di¤erent debt maturities, and these should in turn re‡ect the possibility of a crisis associated with illiquid portfolios. Consequently, the role of short term debt in generating a crisis can only be analyzed in a model of the simul ...
NBER WORKING PAPER SERIES RISKS OF AN ECONOMY
... balance sheet, paying a “dividend” equal to the promised interest payment. A risk associated with holding sovereign local currency debt is that the government may dilute (or inflate away) part of the value or the debt, or may forcibly restructure some of the debt. The “dilution/inflation risk premiu ...
... balance sheet, paying a “dividend” equal to the promised interest payment. A risk associated with holding sovereign local currency debt is that the government may dilute (or inflate away) part of the value or the debt, or may forcibly restructure some of the debt. The “dilution/inflation risk premiu ...
Reinhart and Rogoff
... depiction of financial repression (see definition in Box 1) would include the savaging of pension funds. The paper proceeds as follows. The next section places the recent surge in government debt in the advanced economies in historical perspective, distinguishing the timing and magnitudes of earlier ...
... depiction of financial repression (see definition in Box 1) would include the savaging of pension funds. The paper proceeds as follows. The next section places the recent surge in government debt in the advanced economies in historical perspective, distinguishing the timing and magnitudes of earlier ...
The Kingdom of Denmark`s New Inflation
... interest payments make up a fixed share of the indexed value of the principal on the payment date (for the Danish government's new inflationlinked bond, the annual coupon rate is 0.1 per cent). A lagged consumer price index ("reference index") is used to calculate the indexed principal at a given ...
... interest payments make up a fixed share of the indexed value of the principal on the payment date (for the Danish government's new inflationlinked bond, the annual coupon rate is 0.1 per cent). A lagged consumer price index ("reference index") is used to calculate the indexed principal at a given ...
Monetary and Fiscal Policy with Sovereign Default
... Du and Schreger (2015). Cuadra et al. (2010) study a production economy with endogenous fiscal policy but abstract from monetary policy and - as is common in the sovereign default literature - look at a small open economy that trades real bonds with foreign investors. Hur et al. (2014) consider an e ...
... Du and Schreger (2015). Cuadra et al. (2010) study a production economy with endogenous fiscal policy but abstract from monetary policy and - as is common in the sovereign default literature - look at a small open economy that trades real bonds with foreign investors. Hur et al. (2014) consider an e ...
3 Generic-Culpepper-Economy - ddi09
... Links – Deficit Spending .................................................................................................................................. 38 Links – Paygo ............................................................................................................................... ...
... Links – Deficit Spending .................................................................................................................................. 38 Links – Paygo ............................................................................................................................... ...
Full Version
... positive, where the IMF appraised the reforms measures deployed by the government during the previous period. The mission acknowledged that the government has put in place a program which allows for increased growth, financial stability, and economic inclusivity, essentially improving the quality of ...
... positive, where the IMF appraised the reforms measures deployed by the government during the previous period. The mission acknowledged that the government has put in place a program which allows for increased growth, financial stability, and economic inclusivity, essentially improving the quality of ...
Liberal Mercantilism: Exchange Rate Regimes, Foreign Currency
... foreign currency debt burdens are high. Finally, we expect the relationship between debt, reserve losses, managed exchange rates, and trade disputes to be more evident after the GATT/WTO criteria for accessing balance-of-payments exemptions were tightened in 1994. We test our hypotheses in quantitat ...
... foreign currency debt burdens are high. Finally, we expect the relationship between debt, reserve losses, managed exchange rates, and trade disputes to be more evident after the GATT/WTO criteria for accessing balance-of-payments exemptions were tightened in 1994. We test our hypotheses in quantitat ...
Presentation before the Council of Ministers Erdem Başçı Governor
... decline starting from early 2012 and reach to 5 percent target level at the end of the next year. ...
... decline starting from early 2012 and reach to 5 percent target level at the end of the next year. ...
United Kingdom: 2016 Article IV Consultation-Press Release
... fiscal consolidation has cut the deficit by more than half; monetary policy has remained accommodative, helping to support growth and offset headwinds from fiscal consolidation; financial sector policies have required banks to increase buffers in their balance sheets; and structural reforms have aim ...
... fiscal consolidation has cut the deficit by more than half; monetary policy has remained accommodative, helping to support growth and offset headwinds from fiscal consolidation; financial sector policies have required banks to increase buffers in their balance sheets; and structural reforms have aim ...
Austria
... strengthening sentiment, and buoyant exports. Inflation and unemployment, although rising, are set to stay low. Potential growth slowdown in trading partners in the euro area and emerging markets poses the main downward risks. Fiscal policies: The general government deficit has been well contained i ...
... strengthening sentiment, and buoyant exports. Inflation and unemployment, although rising, are set to stay low. Potential growth slowdown in trading partners in the euro area and emerging markets poses the main downward risks. Fiscal policies: The general government deficit has been well contained i ...
Macroeconomics Chamberlin and Yueh
... leading to a large rise in international capital mobility. • The consequence is that financial markets in different countries have become increasingly interlinked, given rise to what can be described as an international financial market. In addition, the scale of international trading has risen dram ...
... leading to a large rise in international capital mobility. • The consequence is that financial markets in different countries have become increasingly interlinked, given rise to what can be described as an international financial market. In addition, the scale of international trading has risen dram ...
Optimal Federal Public Debt Composition
... In this regard,, in 1999 the National Treasury implemented a new management model based on the Debt Management Office – DMO philosophy. The Figure with the new National Treasury organizational structure is shown below. In this framework, the three SUDIP general coordination coordination staffs parti ...
... In this regard,, in 1999 the National Treasury implemented a new management model based on the Debt Management Office – DMO philosophy. The Figure with the new National Treasury organizational structure is shown below. In this framework, the three SUDIP general coordination coordination staffs parti ...
M-19
... counterparts; subsequently, in the 1990s and 2000s, their competitiveness increased. Did this swing in competitiveness occur primarily because American management fell down on the job in the 1980s and then got its act together afterwards? Not really. American business became less competitive in the ...
... counterparts; subsequently, in the 1990s and 2000s, their competitiveness increased. Did this swing in competitiveness occur primarily because American management fell down on the job in the 1980s and then got its act together afterwards? Not really. American business became less competitive in the ...
Lao People`s Democratic Republic: 2014 Article IV Consultation
... has risen; greater exchange rate flexibility, observed in the second half of 2013, has not resumed; the authorities remain convinced that, measured against their preferred metric, international reserves are more or less adequate; and policies to strengthen banking sector soundness could be accelerat ...
... has risen; greater exchange rate flexibility, observed in the second half of 2013, has not resumed; the authorities remain convinced that, measured against their preferred metric, international reserves are more or less adequate; and policies to strengthen banking sector soundness could be accelerat ...
The new debt trap - Jubilee Debt Campaign
... The debt crisis which began in much of the global South in the early 1980s was triggered by falling prices for primary commodity exports, and an increase in US interest rates. This means countries were earning less money, but spending more on their debts which were primarily owed in dollars. Since e ...
... The debt crisis which began in much of the global South in the early 1980s was triggered by falling prices for primary commodity exports, and an increase in US interest rates. This means countries were earning less money, but spending more on their debts which were primarily owed in dollars. Since e ...
Foreign Investment and Sustainable Development in Argentina
... technologies which fell well short of international practices and operated plants with strong diseconomies of scale. However, a technological learning process took place in many affiliates, contributing over time to increased export flows, which were mostly, but not exclusively, destined to other La ...
... technologies which fell well short of international practices and operated plants with strong diseconomies of scale. However, a technological learning process took place in many affiliates, contributing over time to increased export flows, which were mostly, but not exclusively, destined to other La ...
Foreign Direct Investment and Exchange Rates: A Case Study of
... The reason is that the REER is one of the popular methods used for considering fluctuations in a country's currency against that of its trading partners to indicate its trade competitiveness. This method refers to a calculation of average exchange rate of major trading partners by giving weightings ...
... The reason is that the REER is one of the popular methods used for considering fluctuations in a country's currency against that of its trading partners to indicate its trade competitiveness. This method refers to a calculation of average exchange rate of major trading partners by giving weightings ...
Argentina: From From Default to Default
... GDP growth per capita was less than one percent. After the dictatorship of a military junta in 1976 and a war against guerilla groups (“dirty war”), the country was in terrible economic conditions. Finally, inflation reached its highest point of 4,923 percent per annum which resulted in an economic ...
... GDP growth per capita was less than one percent. After the dictatorship of a military junta in 1976 and a war against guerilla groups (“dirty war”), the country was in terrible economic conditions. Finally, inflation reached its highest point of 4,923 percent per annum which resulted in an economic ...
Understanding Spanish financial crises, 1850-2000: What determined their severity?
... Bordo et al 2001). Crises were severe (it is the second period with more severe crises after 1973-2000) but less than the world average (8 for Spain and 9.8 for the world). The 1866 Spanish crisis is quite representative of the nineteenth century crises and it coincided with the 1866 Overend Gurney ...
... Bordo et al 2001). Crises were severe (it is the second period with more severe crises after 1973-2000) but less than the world average (8 for Spain and 9.8 for the world). The 1866 Spanish crisis is quite representative of the nineteenth century crises and it coincided with the 1866 Overend Gurney ...
NBER WORKING PAPER SERIES INFLATION, TAX RULES, AND THE STOCK MARKET
... return until the share price per dollar of capital returned to its initial equilibrium. l The current paper presents some illustrative calculations of the magnitude of the fall in the equilibrium capital stock that would result under certain simplifying assumptions. In the first section of this pape ...
... return until the share price per dollar of capital returned to its initial equilibrium. l The current paper presents some illustrative calculations of the magnitude of the fall in the equilibrium capital stock that would result under certain simplifying assumptions. In the first section of this pape ...
Fiscal Vulnerabilities and Risks from Local Government
... systematically managed (Schwartz, Corbacho, and Funke, 2013). Sources: CEIC; and IMF staff estimates. ...
... systematically managed (Schwartz, Corbacho, and Funke, 2013). Sources: CEIC; and IMF staff estimates. ...
pse09 van der Ploeg 9563581 en
... takers in international capital markets, but face an interest premium the size of which depends on the level of foreign debt. A country with low foreign debt has a small risk of default and can borrow on international markets at the world interest rate. But beyond a certain level of foreign indebted ...
... takers in international capital markets, but face an interest premium the size of which depends on the level of foreign debt. A country with low foreign debt has a small risk of default and can borrow on international markets at the world interest rate. But beyond a certain level of foreign indebted ...
Tax Biases to Debt Finance
... involves, for example, granting firms a deduction for the normal return on equity equal to the rate of government bonds. Apart from eliminating debt bias, such an allowance would bring other important economic benefits, such as increased investment, higher wages, and higher economic growth. The main ...
... involves, for example, granting firms a deduction for the normal return on equity equal to the rate of government bonds. Apart from eliminating debt bias, such an allowance would bring other important economic benefits, such as increased investment, higher wages, and higher economic growth. The main ...