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lack of credibility on international financial markets from the 1990s or the recent global crisis. We conclude that …
Persistent link: https://www.econbiz.de/10011258296
discontinuity in sovereign debt pricing. This study suggests that debt forgiveness is a more effective solution in debt crisis, as …
Persistent link: https://www.econbiz.de/10011260952
Following the financial crisis effects, the issue of debt sustainability became of global importance, even for … international security reasons. In the EU, despite post-crisis fiscal austerity measures aimed at rebalancing the public finances …
Persistent link: https://www.econbiz.de/10011201268
Three sovereign defaults in the past decade have each inflicted losses of at least 70% on bondholders: Argentina, Ecuador, and now Greece. In each case, creditor rights and the rule of law were trampled, setting troubling precedents that are worrying investors involved in vulnerable European...
Persistent link: https://www.econbiz.de/10011110096
In this study, we begin by assessing the ability of sovereign credit ratings to anticipate crises. In addition, given the wave of sovereign credit ratings downgrades that have followed the crises in Asia, we investigate formally the extent to which credit ratings are reactive. Along the way, we...
Persistent link: https://www.econbiz.de/10008531919
In focusing on the 24 month window prior to the onset of the crisis, the criteria for ranking the indicators presented … in our related work does not distinguish between a signal given 12 months prior to the crisis and one given one month … prior to the crisis. In what follows we examine this issue, by tabulating for each of the monthly indicators the average …
Persistent link: https://www.econbiz.de/10008531924
Predicting the timing of currency and banking crises is likely to remain an elusive task for academics, financial market participants, and policymakers. Few foresaw the Asian crises and fewer still could have imagined their severity. However, recent events have highlighted the importance of...
Persistent link: https://www.econbiz.de/10008531929
The signals approach was applied to 24 of the indicators around the dates of the 29 banking and the 87 currency crises. In what follows, we first compare our results for the 15 original indicators in Kaminsky and Reinhart (1996) to those presented in that study. This exercise assesses the...
Persistent link: https://www.econbiz.de/10008531936
Abstract Starting from some of the most recent literature developed after the world financial crisis, it has been …, the total level of investments, output and employment. Abstract When a financial crisis occurs, banks reduce their supply … of interbank funds replicating, to some extent, the behaviour of the interbank market during the last crisis. Through the …
Persistent link: https://www.econbiz.de/10011156994
In our view, the causes of the crisis are tied to the political change towards a Neoliberal phase from the 1970s on: a …, financialisation, globalisation – have eventually led to a large crisis as a result of the huge increase of inequality, financial … instability, and trade imbalances. In this perspective, the “financial crisis” is the signal of underlying problems concerning the …
Persistent link: https://www.econbiz.de/10011258120