state and regulators are not necessarily independent. Among other things, we show that firms invest more, issue more debt …

leveraged banks’ precautionary demand for liquidity. When adverse asset shocks materialize, a bank’s ability to roll over debt …

further loans to help service the debt. Since deposits are mainly short-term and loans are long-term, the short-run demand for …

I analyze how lack of commitment affects the maturity structure of sovereign debt. Governments balance benefits of …-term debt affects default and rollover decisions by subsequent policy makers. The equilibrium maturity structure is shaped by … revenue losses on inframarginal units of debt that reflect the price impact of these decisions. The model predicts an interior …

aggressive', in which case they accept negative-NPV projects. In the first case, the uniquely optimal security is debt. In the … second case, it is levered equity. Debt maximizes lenders’ payoffs from financing low-NPV projects, i.e., projects that have … that are relatively likely to break even are financed with debt, while less profitable projects are financed with equity …

economic exchanges since they face the possibility that debt default might also spill over to hinder their non …

10% per annum, the drop in trend growth of as much as 4% is insufficient to deter reneging. Debt relief generally … improves the relative attractiveness of debt repayment. With a 10% discount rate, however, even writing off 75% of India …'s external debt fails to make debt repayment incentive-compatible. …

of change of nominal depreciation. We examine the composition of the debt as well as its level, and a variety of other …; and the level of foreign interest rates is high. A low ratio of foreign direct investment to debt is consistently …

East European countries. From that baseline, we analyse the solvency of Eastern Europe by calculating a `growth-adjusted-debt …-per-effective-capita' measure of the burden of debt in these countries. Finally, we calculate a benchmark for the secondary market price of their …

Securitization of LDC debt would significantly aid the international debt problem by increasing liquidity and expanding …