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We introduce a new, market-based and forward looking measure of political risk derived from the yield spread between a country's U.S. dollar debt and an equivalent U.S. Treasury bond. We explain the variation in these sovereign spreads with four factors: global economic conditions,...
Persistent link: https://www.econbiz.de/10010951038
World Trade Organization (WTO). However, many are still individually small and thus have a limited ability to bilaterally … trade retaliation. such as the WTO. but not under agreements extended to include certain financial instruments. In …
Persistent link: https://www.econbiz.de/10009368132
We provide a simple but novel model of trade agreements that highlights the role of transaction costs, renegotiation and dispute settlement. The model allows us to characterize the appropriate remedy for breach and whether the agreement should be structured as a system of "property rights" or...
Persistent link: https://www.econbiz.de/10008627165
. But in reality, most WTO disputes involve disagreements of interpretation concerning the agreement, or instances where the … agreement is simply silent. And some have suggested that the WTO's Dispute Settlement Body (DSB) might serve a useful purpose by …
Persistent link: https://www.econbiz.de/10005830175
Central bank intervention in foreign exchange markets may, under some conditions, stimulate exports and retard imports. In the past few years, this issue has moved to center stage because of the foreign exchange policies of China. China has regularly intervened to prevent the RMB from...
Persistent link: https://www.econbiz.de/10005050235
Some argue that sovereign debt incurred without the consent of the people and not for their benefit, such as that of apartheid South Africa, should be considered odious and not transferable to successor governments. We argue that an institution that truthfully announced whether regimes are...
Persistent link: https://www.econbiz.de/10005050304
important role to play in facilitating the success of the "shallow integration" approach that the GATT/WTO has adopted. Yet … despite the prominence given to the non-violation clause by its legal drafters and suggested by economic theory, in GATT/WTO … the (on- and off-) equilibrium impacts of the non-violation clause on the joint welfare of the GATT/WTO member governments …
Persistent link: https://www.econbiz.de/10010821996
regulatory race to the bottom. WTO rules and disputes, however, center on complaints about excessively stringent regulations … WTO legal framework in light of our results, arguing that it does a reasonably thorough job of policing regulatory …
Persistent link: https://www.econbiz.de/10008622363
Why is it difficult to restructure sovereign debt in a timely manner? In this paper we present a theory of the sovereign debt restructuring process in which delay arises as individual creditors hold-up a set- tlement in order to extract greater payments from the sovereign. We then use the theory...
Persistent link: https://www.econbiz.de/10008777356
Understanding and minimizing the transaction costs of policy implementation are critical for reducing tropical forest losses. As the international community prepares to launch REDD+, a global initiative to reduce greenhouse gas emissions from tropical deforestation, policymakers need to pay...
Persistent link: https://www.econbiz.de/10008836719