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This paper examines how domestic holdings of government debt affect sovereign default risk and government debt management. I develop a dynamic stochastic general equilibrium model with both external and domestic debt that endogenously generates output contraction upon default. Domestic holdings...
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Capital v. Argentina has the potential to shatter this consensus. A panel of the US Court of Appeals for the Second Circuit … has approved a novel injunction, which requires Argentina to make full payment to holdouts who declined to participate in … NML v. Argentina. The case is important both for its interpretation of the pari passu clause — some version of which …
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Recent court rulings effectively barred Argentina from international capital markets until she honored previous … era provides us with clues into how the sovereign debt market could evolve in the wake of the Argentina rulings. In …
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In March 2013 around 130 participants from academia, banking and finance, governments and central banking gathered at the premises of the OeNB in Vienna for a conference jointly organized by the European Money and Finance Forum SUERF, the OeNB and the Austrian Society for Bank Research to...
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Public and private sector balance sheets are an important component to any analysis of debt sustainability. A vulnerable and indebted private sector can become a sudden liability for the government; alternatively, resilient household and bank balance sheets may reveal potential sources of...
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