This paper examines how Japan’s long-term interest rates and Japanese banks’ interest rate risk exposures may evolve … investor base of government securities. A further deterioration of fiscal conditions would push up long-term rates by about 2 …

Most tax systems create a tax bias toward debt finance. Such debt bias increases leverage and may negatively affect … financial stability. This paper models and estimates debt bias in the financial sector, and present novel estimates for … investment banks and non-bank financial intermediaries such as finance and insurance companies. We find debt bias to be pervasive …

We estimate ex post returns to emerging market debt by combining secondary-market prices with observed flows based on … bond. This reflects the combined effect of the 1980s debt crisis and much higher returns during 1989-2000. Annual returns … high-yield bonds. However, unlike returns on these bonds, emerging market debt returns do not seem significantly correlated …

also studies the case in which the government conducts a voluntary debt restructuring to capture the capital gains from the … increase in its debt market value implied by a rule announcement. In addition, the paper shows how debt ceilings may reduce the …

Over the past three decades, large and persistent discrepancies between the annual change in public debt and the budget … deficit, so-called stock-flow adjustments, were a prominent feature of debt dynamics in many economies. The aim of this paper … stock-flow adjustments to increases in debt is likewise smaller in countries with above average fiscal transparency. This …

This paper-consisting of a regional study and seven country studies-reviews the state of domestic public debt markets … account for the lion's share of capital markets, regional public debt markets remain underdeveloped for a variety of reasons … and composition of debt (with sizeable nonstandard and non-tradable components), fragmentation of public debt between …

This paper estimates bond-by-bond "haircuts"-realized investor losses-in recent debt restructurings in Russia, Ukraine …

years-regardless of their exchange rate regime-their growth rates have been disappointing and their public debt has risen … increasingly facing unsustainable debt positions, innovative ways need to be found to raise their economic growth rates and …. Most of the increase in their public debt is accounted for by a deterioration in primary fiscal balances that has been …

an external debt overhang. A simple taxation scheme is specified and it is shown that a country can be on the “wrong side …” of its debt Laffer curve only if it is on the wrong side of its tax Laffer curve. The analysis indicates that fairly … disincentives associated with the debt overhang are large enough to place a country on the wrong side of its debt Laffer curve. …

primary commodities and exposure to terms of trade shocks. This paper finds that the coefficient of the lagged debt stock was … significant and positive, consistent with the theory that higher levels of debt warrant greater fiscal effort. Various measures of …