. Total external debt (public and private) and domestic credit are also included through 2013. This combination gives a broad …-by-country basis. In addition to public debt, we trace out the evolution of its composition between domestic and external borrowing …

We analyze the role of debt in persuading an entrepreneur to pay out cash flows, rather than to divert them. In the … first part of the paper we study the optimal debt contract -- specifically, the trade-off between the size of the loan and … the repayment -- under the assumption that some debt contract is optimal. In the second part we consider a more general …

Does short-term debt increase vulnerability to financial crisis, or does short-term debt reflect -- rather than cause … -- the incipient crisis? We study the role that short-term debt played in the collapse of the East Asian financial sector in … 1997-1998. We alleviate concerns about the endogeneity of short-term debt by using long-term debt obligations that matured …

We study rollover risk and collateral value in a dynamic asset pricing model with endogenous debt financing by … borrowers face rollover risk if the belief dispersion between the borrowers and the pessimistic lenders widens after interim bad … news. We demonstrate the optimality of the maximum riskless short-term debt financing for optimistic borrowers even in the …

corporate credit risk relative to the US, and when european firms value more than US firms the flexibility and information …We present a dynamic general equilibrium model with agency costs where: i) firms are heterogeneous in the risk of …

studies conducted in eleven countries to explore liquidity risk transmission. Among the main results is, first, that … explanatory power of the empirical model is higher for domestic lending than for international lending. Second, how liquidity risk … management across global banks can be important for liquidity risk transmission into lending. Fourth, there is substantial …

others blow over. We demonstrate that what makes some bubbles more dangerous than others is credit. When fueled by credit … slower recoveries. Credit-financed housing price bubbles have emerged as a particularly dangerous phenomenon …

This paper compares the equilibrium dynamics of an economy facing an aggregate collateral constraint on external debt … central finding of the paper is that the economy with the aggregate borrowing limit does not generate higher levels of debt …

Government guarantees of private debt deplete equity. The depletion is greatest during periods when the probability of … debt up to the limit the government permits. Declines in asset values raise debt in relation to asset values and thus … asset values to market. Less widely recognized is that guaranteed debt creates an incentive to pay equity out to owners …