The aim of this chapter is to map out the macroeconomic effects of a sustained debt-deflation within a small open … economy. We build a 2 country stock flow consistent model, and show the effects of a debt-deflation cycle on households, firms …

development expenditures at the time of debt contracting, are associated with less restrictive default clauses, especially in bond …

This paper develops a debt-run model to study the effects of liquidity injections on debt markets in the presence of a … terms of debt. We show that when equityholders have a large bargaining power, liquidity injections into distressed firms can … rather cause more aggressive runs from their creditors, hurting the debt value. This outcome occurs because equityholders can …

I develop a dynamic capital structure model in which shareholders determine a firm's leverage ratio, debt maturity, and … default strategy. In my model, the firm's debt matures all at once. Therefore, after repaying the principal shareholders own … gives shareholders the incentive to issue finite maturity debt and allows me to study firms' joint choice of leverage and …

and public debt and the subsequent financing costs. Using new debt issued by firms in 26 non-US countries, we find, after … controlling for firm characteristics predicted by debt agency and information asymmetry theories, that the level of financial … financial information have significant impacts not only on firms' debt choice and yield to maturity in domestic debt market, but …

The authors discuss the role of private debt in financial crises and attempt to apply the debt deflation logic to the … living off their savings rather than making the required additional savings to reduce their debt and restore balance sheet … positions. With greater forced or needed savings and the resultant contraction of aggregate demand a downward spiral of debt …

This paper studies strategic savings and free-riding behaviours among ex- ante vulnerable firms in a fixed debt network …

We analyze a defaultable firm's optimal capital and debt structures when its debt includes senior straight bonds and … either Contingent Convertible or Write-Down bonds. The firm's stakeholders bear a liquidity risk prior to the debt maturity … value hits barriers that are endogenously obtained. The optimal capital structure and the optimal senior/loss-absorbing debt …