The real effects of debt - Bank for International Settlements
... economy. At least in principle, it should also shift risk to those most able to bear it. And public debt, in particular, can help smooth consumption not only through the lifetime of individuals who are currently alive, but also across generations. To the extent that future generations will be richer ...
... economy. At least in principle, it should also shift risk to those most able to bear it. And public debt, in particular, can help smooth consumption not only through the lifetime of individuals who are currently alive, but also across generations. To the extent that future generations will be richer ...
Fiscal Austerity during Debt Crises
... Default allows the government to avoid paying the debt and have more resources for domestic consumption. In fact, defaulting on debt b is optimal only if under no default, the economy must experience capital outflows, −b + q(z, b0 )b0 < 0. In this model, however, default relaxes two constraints: the ...
... Default allows the government to avoid paying the debt and have more resources for domestic consumption. In fact, defaulting on debt b is optimal only if under no default, the economy must experience capital outflows, −b + q(z, b0 )b0 < 0. In this model, however, default relaxes two constraints: the ...
brp inc. management`s discussion and analysis of financial condition
... believes non-IFRS measures are important supplemental measures of operating performance because they eliminate items that have less bearing on the Company’s operating performance and thus highlight trends in its core business that may not otherwise be apparent when relying solely on IFRS measures. T ...
... believes non-IFRS measures are important supplemental measures of operating performance because they eliminate items that have less bearing on the Company’s operating performance and thus highlight trends in its core business that may not otherwise be apparent when relying solely on IFRS measures. T ...
Cyclicality of Credit Supply: Firm Level Evidence
... to the bond market, we condition on firms having issued bonds in the last five years. We find that the incidence of bank loans, as compared to bonds, is very cyclical. Of firms receiving a bank loan but not issuing a bond in 1993, 16% received a loan but did not issue bonds in 1994, 3% issued bonds ...
... to the bond market, we condition on firms having issued bonds in the last five years. We find that the incidence of bank loans, as compared to bonds, is very cyclical. Of firms receiving a bank loan but not issuing a bond in 1993, 16% received a loan but did not issue bonds in 1994, 3% issued bonds ...
Public Debt and Deficits
... this has not prevented some poor policy outcomes in the past. Most recently, participants in the ‘political economy’ have been focused on achieving surpluses and eliminating debt.1 While debt management is an important part of managing public finances, it appears that this emphasis has made it harde ...
... this has not prevented some poor policy outcomes in the past. Most recently, participants in the ‘political economy’ have been focused on achieving surpluses and eliminating debt.1 While debt management is an important part of managing public finances, it appears that this emphasis has made it harde ...
Debt Specialization - Bocconi University
... codes 6000-6999) and end up with 29,138 firm-year observations. We further remove 1) firmyears with missing or zero values for total assets (27,885 observations remaining); 2) firm-years with missing or zero total debt (19,969 observations remaining); and 3) firm-years with market or book leverage o ...
... codes 6000-6999) and end up with 29,138 firm-year observations. We further remove 1) firmyears with missing or zero values for total assets (27,885 observations remaining); 2) firm-years with missing or zero total debt (19,969 observations remaining); and 3) firm-years with market or book leverage o ...
Indeterminacy in Sovereign Debt Markets: an Empirical Investigation ∗ Luigi Bocola
... program, a framework that gives the ECB powers to purchase sovereign bonds in order to prop up their prices. One reading of these events is that the establishment of the OMT program was successful in dealing with coordination failures among bondholders and decreased the likelihood of self-fulfilling ...
... program, a framework that gives the ECB powers to purchase sovereign bonds in order to prop up their prices. One reading of these events is that the establishment of the OMT program was successful in dealing with coordination failures among bondholders and decreased the likelihood of self-fulfilling ...
NBER WORKING PAPER SERIES INVESTMENT CYCLES AND SOVEREIGN DEBT OVERHANG Mark Aguiar
... This paper builds on the influential paper of Thomas and Worrall (1994), who introduce a model of foreign direct investment in an environment of limited commitment. Alburquerque and Hopenhayn (2004) develop a related model. Our analysis differs from these papers in several important respects. The fi ...
... This paper builds on the influential paper of Thomas and Worrall (1994), who introduce a model of foreign direct investment in an environment of limited commitment. Alburquerque and Hopenhayn (2004) develop a related model. Our analysis differs from these papers in several important respects. The fi ...
par value - McGraw Hill Higher Education
... vote constitutes the most important control device of shareholders. • Directors are elected each year at an annual meeting by a vote of the holders of a majority of shares who are present and entitled to vote. – The exact mechanism varies across companies. ...
... vote constitutes the most important control device of shareholders. • Directors are elected each year at an annual meeting by a vote of the holders of a majority of shares who are present and entitled to vote. – The exact mechanism varies across companies. ...
Voluntary Sovereign Debt Exchanges
... (see, for instance, Panizza et al., 2009 and Hatchondo and Martinez, 2011). In many countries (including the U.S.), there are legal procedures that creditors may follow once individuals or corporations renege on their debt. Creditors rely on the enforcement of domestic courts to get—partially—repaid ...
... (see, for instance, Panizza et al., 2009 and Hatchondo and Martinez, 2011). In many countries (including the U.S.), there are legal procedures that creditors may follow once individuals or corporations renege on their debt. Creditors rely on the enforcement of domestic courts to get—partially—repaid ...
Why is fiscal policy often procyclical?"
... and Persson and Tabellini (2000, chapter 4). Speci…cally, government policy is chosen after the elections, by the incumbent, and there is no commitment to electoral promises. Thus, there is an element of “contract incompleteness”in the political environment, and the government can only be held accou ...
... and Persson and Tabellini (2000, chapter 4). Speci…cally, government policy is chosen after the elections, by the incumbent, and there is no commitment to electoral promises. Thus, there is an element of “contract incompleteness”in the political environment, and the government can only be held accou ...
GambaTriantis2013HEC.. - University of Warwick
... new debt issuance. We assume that the debt level can be reduced by repurchasing a portion of the debt at its par value, rather than its market value. Mao and Tserlukevich (2012) show that in the absence of frictions, lenders will sell their debt back to the firm only at par value. Even with frictio ...
... new debt issuance. We assume that the debt level can be reduced by repurchasing a portion of the debt at its par value, rather than its market value. Mao and Tserlukevich (2012) show that in the absence of frictions, lenders will sell their debt back to the firm only at par value. Even with frictio ...
The Debt-Overhang Hypothesis and the Effects on Low/High Income
... From the past decades we can conclude that debt crises are something that happens regularly in the modern economy. The American savings and loans crisis of the 1980s happened at the same time as the LDCs started to default on their sovereign debt. Around the turn of the millennia Argentina plunged i ...
... From the past decades we can conclude that debt crises are something that happens regularly in the modern economy. The American savings and loans crisis of the 1980s happened at the same time as the LDCs started to default on their sovereign debt. Around the turn of the millennia Argentina plunged i ...
... Since the landmark seminal paper by Modigliani and Miller (1958), the issue of capital structure has continued to generate great interests in finance literature. Copeland and Weston (1993) define capital structure as the permanent financing represented by longterm debt, preferred stock, and sharehol ...
Credit Risk
... ignores migration and market risk. For a large number of obligors, the number of defaults during a given period has a Poisson distribution. The loss distribution of a bond/loan portfolio is derived. Belongs to the class of intensity-based (or reduced-form) models. Default risk is not linked to t ...
... ignores migration and market risk. For a large number of obligors, the number of defaults during a given period has a Poisson distribution. The loss distribution of a bond/loan portfolio is derived. Belongs to the class of intensity-based (or reduced-form) models. Default risk is not linked to t ...
The new debt trap - Jubilee Debt Campaign
... Of the 14 countries we have identified as most dependent on foreign lending – those in group 2 – there are nine for which more data on projected future government debt payments is available from the IMF and World Bank: Bhutan, Ethiopia, Ghana, Lao PDR, Mongolia, Mozambique, Senegal, Tanzania and Uga ...
... Of the 14 countries we have identified as most dependent on foreign lending – those in group 2 – there are nine for which more data on projected future government debt payments is available from the IMF and World Bank: Bhutan, Ethiopia, Ghana, Lao PDR, Mongolia, Mozambique, Senegal, Tanzania and Uga ...
Government Deficits and Debt - The Office of the Auditor General in
... Research was organized and binders prepared by KPMG for the OAG. 4. Facilitated roundtable discussions bringing together business, labour, academic and community representatives to discuss deficits and debts. A series of PowerPoint presentations were developed, including: the Province of Manitoba’ ...
... Research was organized and binders prepared by KPMG for the OAG. 4. Facilitated roundtable discussions bringing together business, labour, academic and community representatives to discuss deficits and debts. A series of PowerPoint presentations were developed, including: the Province of Manitoba’ ...
report of the annual national debt sustainability analysis
... sustainable throughout the projection period. All debt ratios are well below their threshold levels. The NPV of Total Debt-to-GDP ratio hovers around an average of 10.65 percent over the projection period against the indicative threshold of 30 percent. Also, average NPV of Total Debt-to-Revenues and ...
... sustainable throughout the projection period. All debt ratios are well below their threshold levels. The NPV of Total Debt-to-GDP ratio hovers around an average of 10.65 percent over the projection period against the indicative threshold of 30 percent. Also, average NPV of Total Debt-to-Revenues and ...
LDC Debt Policy
... Although it arguably should not have, the Mexican payments crisis of August 1982 took the U.S. government completely by surprise. Federal Reserve staffers had prepared a report in April warning of potential debt-service difficulties, but this report did not receive high-level attention. The U.S. gov ...
... Although it arguably should not have, the Mexican payments crisis of August 1982 took the U.S. government completely by surprise. Federal Reserve staffers had prepared a report in April warning of potential debt-service difficulties, but this report did not receive high-level attention. The U.S. gov ...
Jamaica: Fifth Review Under the Extended Fund
... billion at end-August, covering about 4 months of next year’s imports of goods and services, while net international reserves had risen to US$2.1 billion. With large debt repayments coming due in October 2014 and June and July 2015, by end-2015, reserves are projected to be broadly back on the path ...
... billion at end-August, covering about 4 months of next year’s imports of goods and services, while net international reserves had risen to US$2.1 billion. With large debt repayments coming due in October 2014 and June and July 2015, by end-2015, reserves are projected to be broadly back on the path ...
2017-2018 Budget - Generations Fund
... The Act also specifies the revenue sources dedicated to the Generations Fund for repayment of the debt. The Act also allows the government to order that a part, which it establishes, of any sum that would otherwise have been attributed to the General Fund of the Consolidated Revenue Fund be allocate ...
... The Act also specifies the revenue sources dedicated to the Generations Fund for repayment of the debt. The Act also allows the government to order that a part, which it establishes, of any sum that would otherwise have been attributed to the General Fund of the Consolidated Revenue Fund be allocate ...
DOC - Europa.eu
... In what circumstances can Member States suspend the restrictions on uncovered short selling of sovereign debt? The Short Selling Regulation sets out certain restrictions on uncovered short sales of sovereign debt, in order to reduce the risks of settlement failure. To enter a short sale, an investo ...
... In what circumstances can Member States suspend the restrictions on uncovered short selling of sovereign debt? The Short Selling Regulation sets out certain restrictions on uncovered short sales of sovereign debt, in order to reduce the risks of settlement failure. To enter a short sale, an investo ...
Discussion Paper
... equivalent money value, with the possibility of also linking coupon payments in a similar way. Atta-Mensah (2004: 1-2) distinguishes between two types of commodity-linked bonds: Forward-type bonds, also referred to as commodity-indexed bonds, where the coupon and/or principal payments are linearly r ...
... equivalent money value, with the possibility of also linking coupon payments in a similar way. Atta-Mensah (2004: 1-2) distinguishes between two types of commodity-linked bonds: Forward-type bonds, also referred to as commodity-indexed bonds, where the coupon and/or principal payments are linearly r ...
First Report on the Public Credit
The First Report on the Public Credit was one of three major reports on fiscal and economic policy submitted by American Founding Father and first United States Treasury Secretary Alexander Hamilton on the request of Congress. The report analyzed the financial standing of the United States of America and made recommendations to reorganize the national debt and to establish the public credit. Commissioned by the House of Representatives on September 21, 1789, the Report was presented on January 9, 1790, at the second session of the First US Congress. The 40,000 word document called for full federal payment at face value to holders of government securities (“Redemption”) and the national government to assume funding of all state debt (“Assumption”) The political stalemate in Congress that ensued led to the Compromise of 1790, locating the permanent US capitol on the Potomac River (""Residency”).The Federalist's success in winning approval for Hamilton’s reforms led to the emergence of an opposition party – the Democratic-Republicans and set the stage for political struggles that would persist for decades in American politics.