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examines how rating agencies assess MDB ratings, focusing in particular on how Standard & Poor's assesses capital as part of … its MDB rating process. The results are compared with those implied by an industry-standard, ratings-based Credit Risk … Model (CRM). Applying these methodologies to one specific MDB, the Inter-American Development Bank (IDB), the paper shows …
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The recent crisis was characterized by massive illiquidity. This paper reviews what we know and don't know about illiquidity and all its friends: market freezes, fire sales, contagion, and ultimately insolvencies and bailouts. It first explains why liquidity cannot easily be apprehended through...
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Climate change adaptation efforts are heavily dependent on a country's fiscal capacity and the associated costs of undertaking adaptation policies. The current accumulation of high debt levels in emerging and low-income developing countries, which are disproportionately affected by climate...
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