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Debt Maturity and the Global Financial Architecture

Jeanne, Olivier - C.E.P.R. Discussion Papers - 2000

The paper starts from the premise that the debate on the ‘new architecture’ of the international financial system should be based on a theory that endogenizes the structure of countries' external liabilities. I present a model in which the maturity of a country's external sovereign debt is...

Persistent link: https://www.econbiz.de/10005666408

A Theory of International Crisis Lending and IMF Conditionality

Jeanne, Olivier; Ostry, Jonathan D; Zettelmeyer, Jeromin - C.E.P.R. Discussion Papers - 2008

We present a framework that clarifies the financial role of the IMF, the rationale for conditionality, and the … conditions under which IMF-induced moral hazard can arise. In the model, traditional conditionality commits country authorities … to undertake crisis resolution efforts, facilitating the return of private capital, and ensuring repayment to the IMF …

Persistent link: https://www.econbiz.de/10005666863

Noise Trading and Exchange Rate Regimes

Jeanne, Olivier; Rose, Andrew K - C.E.P.R. Discussion Papers - 1999

Both the literature and new empirical evidence show that exchange rate regimes differ primarily by the noisiness of the exchange rate, not by measurable macroeconomic fundamentals. This motivates a theoretical analysis of exchange rate regimes with noise traders. The presence of noise traders...

Persistent link: https://www.econbiz.de/10005666966

The International Lender of Last Resort: How Large is Large Enough?

Jeanne, Olivier; Wyplosz, Charles - C.E.P.R. Discussion Papers - 2001

This Paper considers how an international lender of last resort can prevent self-fulfilling banking and currency crises in emerging economies. We compare two different arrangements: one in which the international lender of last resort injects international liquidity into financial markets, and...

Persistent link: https://www.econbiz.de/10005136622

An Interest Rate Defence of a Fixed Exchange Rate?

Flood, Robert P; Jeanne, Olivier - C.E.P.R. Discussion Papers - 2000

Defending a government's exchange-rate commitment with active interest rate policy is not an option in the Krugman-Flood-Garber (KFG) model of speculative attacks. In that model, the interest rate is the passive reflection of currency-depreciation expectations. In this paper we show how to adapt...

Persistent link: https://www.econbiz.de/10005497948

Structuring and Restructuring Sovereign Debt: The Role of Seniority

Bolton, Patrick; Jeanne, Olivier - C.E.P.R. Discussion Papers - 2005

In an environment characterized by weak contractual enforcement, sovereign lenders can enhance the likelihood of repayment by making their claims more difficult to restructure. We show within a simple model how competition for repayment between lenders may result in sovereign debt that is...

Persistent link: https://www.econbiz.de/10005504677

Sovereign Default Risk and Bank Fragility in Financially Integrated Economies

Bolton, Patrick; Jeanne, Olivier - C.E.P.R. Discussion Papers - 2011

We analyze contagious sovereign debt crises in financially integrated economies. Under financial integration banks optimally diversify their holdings of sovereign debt in an effort to minimize the costs with respect to an individual country's sovereign debt default. While diversification...

Persistent link: https://www.econbiz.de/10009003147