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Resolving Sovereign Debt Crises : The Role of Political Risk
Trebesch, Christoph - 2018
Sovereign defaults are bad news for investors and debtor countries, in particular if a default becomes messy and protracted. Why are some debt crises resolved quickly, in a matter of months, while others take many years to settle? This paper studies the duration of sovereign debt crises based on...
Persistent link: https://www.econbiz.de/10012910995
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The Greek Debt Crisis : Likely Causes, Mechanics and Outcomes
Arghyrou, Michael - 2010
We use insights from the literature on currency crises to offer an analytical treatment of the crisis in the market for Greek government bonds. We argue that the crisis itself and its escalating nature are very likely to be the result of: (a) steady deterioration of Greek macroeconomic...
Persistent link: https://www.econbiz.de/10013135455
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External Sovereign Debt in a Monetary Union : Bailouts and the Role of Corruption
Achury, Carolina - 2011
We build a tractable stylized model of external sovereign debt and endogenous international interest rates. In corrupt economies with rent-seeking groups stealing public resources, a politico-economic equilibrium is characterized by permanent fiscal impatience which leads to excessive issuing of...
Persistent link: https://www.econbiz.de/10013121867
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Debt Stabilization and Debt Mutualization in a Monetary Union with Endogenous Risk Premia
Engwerda, Jacob C. - 2015
In this paper we analyse debt stabilization in a monetary union that features endogenous risk premia. In particular, we analyse debt stabilization in two diametrically opposed regimes. In the first regime, the “national fiscal discipline regime”, financial markets impose sovereign risk...
Persistent link: https://www.econbiz.de/10013011725
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Sovereign Debt Relief and its Aftermath
Reinhart, Carmen - 2015
in advanced economies after World War I; and 1978-2010, focusing on emerging market debt crises with private external …
Persistent link: https://www.econbiz.de/10013019408
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Debt Sustainability in the Case of External Debt. An Analysis Based on Italy's Treasury Auctions
Cafiso, Gianluca - 2014
empirical and considers the case of Italy, one of the world's largest debt issuer. We study the potential effects on the …
Persistent link: https://www.econbiz.de/10013044665
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Sovereign Defaults in Court
Schumacher, Julian - 2018
For centuries, defaulting governments were immune from legal action by foreign creditors. This paper shows that this is no longer the case. Building a dataset covering four decades, we find that creditor lawsuits have become an increasingly common feature of sovereign debt markets. The legal...
Persistent link: https://www.econbiz.de/10012920182
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The Output Costs of Hard and Soft Sovereign Default
Trebesch, Christoph - 2016
How costly are sovereign debt crises? In this paper we study output losses during sovereign default and debt renegotiation episodes since 1980. In contrast to previous work, we account for the severity of default and not only for its occurrence. Specifically, we distinguish between “hard”...
Persistent link: https://www.econbiz.de/10012978462
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Credit Booms, Debt Overhang and Secular Stagnation
Illing, Gerhard - 2018
Why do advanced economies fall into prolonged periods of economic stagnation, particularly in the aftermath of credit booms? We present a model of persistent aggregate demand shortage based on strong liquidity preferences of households, in which we incorporate financial imperfections to study...
Persistent link: https://www.econbiz.de/10012927578
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The Costs of Favoritism : Is Politically-Driven Aid Less Effective?
Dreher, Axel; Klasen, Stephan; Vreeland, James Raymond; … - 2021
World Bank projects and generally find that projects that are potentially politically motivated – such as those granted to … governments holding a non-permanent seat on the United Nations Security Council or an Executive Directorship at the World Bank … Council members with higher short-term debt, however, a negative quality rating is more likely. So we find evidence that World …
Persistent link: https://www.econbiz.de/10013316223