Operating Leverage
... The combination of debt and equity used to finance a firm Target Capital Structure The mix of debt, preferred stock, and common equity with which the firm plans to finance its investments ...
... The combination of debt and equity used to finance a firm Target Capital Structure The mix of debt, preferred stock, and common equity with which the firm plans to finance its investments ...
NBER WORKING PAPER SERIES PUBLIC DEBT IN THE USA AND WHO PAYS?
... a historical and comparative international perspective. Section III restates a familiar simple accounting framework for tracing the evolution of the debt over time. This is also a key input into any evaluation of the sustainability of the public sector's fiscal-financial-monetary program ...
... a historical and comparative international perspective. Section III restates a familiar simple accounting framework for tracing the evolution of the debt over time. This is also a key input into any evaluation of the sustainability of the public sector's fiscal-financial-monetary program ...
Summary - A review of the surplus target
... surplus target of a third of a per cent of GDP is estimated to give sufficient space to actively manage an even more long-drawn-out and deep recession without affecting the State’s credit rating. At the same time, stabilisation policy must be adjusted to the new safety margins. Lower net lending in ...
... surplus target of a third of a per cent of GDP is estimated to give sufficient space to actively manage an even more long-drawn-out and deep recession without affecting the State’s credit rating. At the same time, stabilisation policy must be adjusted to the new safety margins. Lower net lending in ...
The effects of post-default fiscal policies
... and also generates the crowding-out effect that is key in these models. We contribute to the literature by studying how this sovereign-bank loop is affected by the use of different fiscal policy instruments and the speed of fiscal policy response. The nature of losses from sovereign default is a que ...
... and also generates the crowding-out effect that is key in these models. We contribute to the literature by studying how this sovereign-bank loop is affected by the use of different fiscal policy instruments and the speed of fiscal policy response. The nature of losses from sovereign default is a que ...
No Silver Bullet - The Pew Charitable Trusts
... Some insist the problem can be solved simply by raising taxes, without cutting spending; others argue that it can be done by cutting spending, without raising taxes. But this study by the nonpartisan Pew Fiscal Analysis Initiative illustrates just how difficult it would be to tackle America’s fiscal ...
... Some insist the problem can be solved simply by raising taxes, without cutting spending; others argue that it can be done by cutting spending, without raising taxes. But this study by the nonpartisan Pew Fiscal Analysis Initiative illustrates just how difficult it would be to tackle America’s fiscal ...
NBER WORKING PAPERS SERIES GOVERNMENT SOLVENCY, PONZI FINANCE AND THE REDUNDANCY
... this question for the case in which fiscal policy, involving, in addition to borrowing, the use of lump—sum taxes and transfers only, can be used for redistribution and insurance among heterogeneous households 1• Heterogeneity is introduced using an ...
... this question for the case in which fiscal policy, involving, in addition to borrowing, the use of lump—sum taxes and transfers only, can be used for redistribution and insurance among heterogeneous households 1• Heterogeneity is introduced using an ...
Global leader in eyewear
... Shifts in perception and customer behavior are changing the relevant market Fashion accessory vs. purely functional device Consumers have shortened the replacement cycle (3-5 years to 1.5 years) and are more likely to buy more eyeglasses for different purposes Accessories are increasingly impo ...
... Shifts in perception and customer behavior are changing the relevant market Fashion accessory vs. purely functional device Consumers have shortened the replacement cycle (3-5 years to 1.5 years) and are more likely to buy more eyeglasses for different purposes Accessories are increasingly impo ...
NBER WORKING PAPER SERIES THE SOCIAL COST OF FOREIGN EXCHANGE RESERVES
... not in real quantities (such as imports or output) but in financial magnitudes. Financial liberalization has led to an explosion in financial assets and liabilities since the 1980s, with which reserves have barely kept pace. For example, Figure 3 shows the ratio of reserves to M2 in a sample of emer ...
... not in real quantities (such as imports or output) but in financial magnitudes. Financial liberalization has led to an explosion in financial assets and liabilities since the 1980s, with which reserves have barely kept pace. For example, Figure 3 shows the ratio of reserves to M2 in a sample of emer ...
NBER WORKING PAPER SERIES INFLATION TARGETING AND DEBT: LESSONS FROM BRAZIL
... means one to 18 months) are affected by the Embi spread in two ways: indirectly, through the Selic, because fluctuations in the Selic move the term structure, and directly because long term interest rates reflect term premia which are affected by default risk even at relatively short maturities. The b ...
... means one to 18 months) are affected by the Embi spread in two ways: indirectly, through the Selic, because fluctuations in the Selic move the term structure, and directly because long term interest rates reflect term premia which are affected by default risk even at relatively short maturities. The b ...
Lebanon`s Public Debt
... At present, the Lebanese banking sector still holds the lion’s share (53.8%) of total debt, despite managing to reduce its exposure from 59.3% in the year 2013. This is in fact mirrored by the smaller proportion of claims on the public sector which fell from 26.96% of local banking sector balance sh ...
... At present, the Lebanese banking sector still holds the lion’s share (53.8%) of total debt, despite managing to reduce its exposure from 59.3% in the year 2013. This is in fact mirrored by the smaller proportion of claims on the public sector which fell from 26.96% of local banking sector balance sh ...
GOVERNMENT DEBT AND DEFICITS IN CANADA: A Macro
... the level of overall public-sector debt. In addition, we focus our analysis further by constraining all fiscal adjustments to come through either taxes or transfers; that is, the analysis takes the level of government expenditures on goods and services as fixed. In doing so, we do not mean to sugges ...
... the level of overall public-sector debt. In addition, we focus our analysis further by constraining all fiscal adjustments to come through either taxes or transfers; that is, the analysis takes the level of government expenditures on goods and services as fixed. In doing so, we do not mean to sugges ...
APEC Meeting Documents - APEC Meeting Document Database
... One example of an unsustainable debt dynamics is the case in which a government systematically has a balanced primary budget, and therefore must always borrow from the financial markets in order to pay for the growthadjusted interest bill. A sustainable debt dynamics, instead, refers to the case in ...
... One example of an unsustainable debt dynamics is the case in which a government systematically has a balanced primary budget, and therefore must always borrow from the financial markets in order to pay for the growthadjusted interest bill. A sustainable debt dynamics, instead, refers to the case in ...
Private Debt Overhang and the Government Spending Multiplier
... New-Keynesian model, deficit-financed increases in government purchases generate a negative wealth effect that induces a reduction in consumption of intertemporal maximizing households. This crowding-out effect of government spending vanishes for households that do not participate in the financial mar ...
... New-Keynesian model, deficit-financed increases in government purchases generate a negative wealth effect that induces a reduction in consumption of intertemporal maximizing households. This crowding-out effect of government spending vanishes for households that do not participate in the financial mar ...
Financial Statement Analysis Tools
... • The coverage ratios are similar to liquidity ratios in that they describe the quantity of funds available to cover certain expenses. We will examine two very similar ratios that describe the firm's ability to meet its interest payment obligations. In both cases, higher ratios are desirable to a de ...
... • The coverage ratios are similar to liquidity ratios in that they describe the quantity of funds available to cover certain expenses. We will examine two very similar ratios that describe the firm's ability to meet its interest payment obligations. In both cases, higher ratios are desirable to a de ...
world public debt and real interest rates
... They also examine the role of fiscal policy, as measured by the budget deficit–GDP ratio in each of the three countries, and estimate that innovations in US fiscal policy account for a substantial fraction of the variation in the world real interest rate. Gagnon and Unferth (1995) estimate the persi ...
... They also examine the role of fiscal policy, as measured by the budget deficit–GDP ratio in each of the three countries, and estimate that innovations in US fiscal policy account for a substantial fraction of the variation in the world real interest rate. Gagnon and Unferth (1995) estimate the persi ...
Project finance: Transactional evidence from Australia
... terms of 25 years or longer. However, it is the adequacy of the change management mechanisms embedded in the contract that will have a greater influence on the stability of revenues over the life of the contract than the credit standing of the payer. To the extent that sovereign risk is a factor wit ...
... terms of 25 years or longer. However, it is the adequacy of the change management mechanisms embedded in the contract that will have a greater influence on the stability of revenues over the life of the contract than the credit standing of the payer. To the extent that sovereign risk is a factor wit ...
Medium Term Debt Management Strategy (2011
... to reach 8.7%, being by 3.4 pp lower than in the similar period of the previous year, due to the increase of the budget revenues by approximately 24% and to the reduction of debt service volume by 10%. During 2009, same as for other indicators of the central government debt, the share of the debt se ...
... to reach 8.7%, being by 3.4 pp lower than in the similar period of the previous year, due to the increase of the budget revenues by approximately 24% and to the reduction of debt service volume by 10%. During 2009, same as for other indicators of the central government debt, the share of the debt se ...
Growth and fiscal policy: a positive theory
... economy. Federal debt in the U.S. is currently its highest level since the decade following World War II. Concerns over the growth of public debt has led to the Budget Control Act of 2011 that will trigger automatic across-the board cuts in spending if a deficit reduction bill of at least 1.2 trillio ...
... economy. Federal debt in the U.S. is currently its highest level since the decade following World War II. Concerns over the growth of public debt has led to the Budget Control Act of 2011 that will trigger automatic across-the board cuts in spending if a deficit reduction bill of at least 1.2 trillio ...
unaudited but reviewed
... 354 million on 21 November 2002. As at 31 December 2002, the remaining indebtedness of approximately Baht 0.9 million was presented as debt awaiting conversion to equity in shareholders’ equity. In May 2003, a creditor forgave indebtedness of Baht 2.1 million (consisting of Tranche B debt of Baht 1. ...
... 354 million on 21 November 2002. As at 31 December 2002, the remaining indebtedness of approximately Baht 0.9 million was presented as debt awaiting conversion to equity in shareholders’ equity. In May 2003, a creditor forgave indebtedness of Baht 2.1 million (consisting of Tranche B debt of Baht 1. ...
The Sovereign-Bank Nexus and the Case for European Safe Bonds
... bonds. Accordingly, they should receive a zero weight in the calculation of banks’ regulatory capital, and not be subject to any large exposure limit. This would encourage euro-area banks to hold ESBies, rather than the riskier bonds issued by their respective sovereigns. Hence, banks could avoid th ...
... bonds. Accordingly, they should receive a zero weight in the calculation of banks’ regulatory capital, and not be subject to any large exposure limit. This would encourage euro-area banks to hold ESBies, rather than the riskier bonds issued by their respective sovereigns. Hence, banks could avoid th ...
Version 2.0, Instruction Manual, Revised Version
... sustainability of a sudden stop in the capital account, namely, a situation where all external financing freezes. This type of event evokes episodes such as the Tequila crisis and the Russian-Asian crisis, for example, and to much lesser extent the subprime crisis (or mortgage ...
... sustainability of a sudden stop in the capital account, namely, a situation where all external financing freezes. This type of event evokes episodes such as the Tequila crisis and the Russian-Asian crisis, for example, and to much lesser extent the subprime crisis (or mortgage ...
Sovereign debt issuance and selective default
... sovereign to default. For this reason we throughout the model we adopt economic definition. Another reason is the consideration of the role of the secondary markets, which would cease to function if foreign and domestic bonds were two different obligations. 1. Sovereign defaults usually happen in se ...
... sovereign to default. For this reason we throughout the model we adopt economic definition. Another reason is the consideration of the role of the secondary markets, which would cease to function if foreign and domestic bonds were two different obligations. 1. Sovereign defaults usually happen in se ...
25 KB - National Homelessness Advice Service
... property values increase in a number of areas (as a result of current government initiatives to encourage house purchasing and a very healthy buy to let lending market), it may be advantageous for lenders to repossess, to reduce bad debts and impaired loan books. By 2020 it is predicted there are a ...
... property values increase in a number of areas (as a result of current government initiatives to encourage house purchasing and a very healthy buy to let lending market), it may be advantageous for lenders to repossess, to reduce bad debts and impaired loan books. By 2020 it is predicted there are a ...
The Puzzle of Persistently Negative Interest Rate
... Therefore, they will persist until GDP per capita reaches advanced economy levels. Thus, it is often thought that for most EMEs and LICs, positive IRGDs and their attendant adverse effects on debt dynamics would only be a problem, if at all, in a relatively distant future. But is this benign outlook ...
... Therefore, they will persist until GDP per capita reaches advanced economy levels. Thus, it is often thought that for most EMEs and LICs, positive IRGDs and their attendant adverse effects on debt dynamics would only be a problem, if at all, in a relatively distant future. But is this benign outlook ...
Government debt
Government debt (also known as public debt, national debt and sovereign debt) is the debt owed by a central government. (In federal states, ""government debt"" may also refer to the debt of a state or provincial, municipal or local government.) By contrast, the annual ""government deficit"" refers to the difference between government receipts and spending in a single year, that is, the increase of debt over a particular year.Government debt is one method of financing government operations, but it is not the only method. Governments can also create money to monetize their debts, thereby removing the need to pay interest. But this practice simply reduces government interest costs rather than truly canceling government debt, and can result in hyperinflation if used unsparingly.Governments usually borrow by issuing securities, government bonds and bills. Less creditworthy countries sometimes borrow directly from a supranational organization (e.g. the World Bank) or international financial institutions.As the government draws its income from much of the population, government debt is an indirect debt of the taxpayers. Government debt can be categorized as internal debt (owed to lenders within the country) and external debt (owed to foreign lenders). Another common division of government debt is by duration until repayment is due. Short term debt is generally considered to be for one year or less, long term is for more than ten years. Medium term debt falls between these two boundaries. A broader definition of government debt may consider all government liabilities, including future pension payments and payments for goods and services the government has contracted but not yet paid.