One of the most often committed mistakes in economic reasoning is the supposition about continuity of economic processes. Yet what dominates in reality is the process of permanent changes which sometimes happen not in a linear but in a cascade way. It must be acknowledged that the capitalist...

The pari passu clause found in most cross-border lending instruments contains the borrower's promise to ensure that the obligation will always rank equally in right of payment with all of the borrower's other unsubordinated debts. The international financial markets have long understood the...

Following the United States, many countries around the world have increasingly turned to structured finance, also known as securitization, to fund loan portfolios. This trend has taken on troubling undertones in the wake of widespread default in the American sub-prime residential mortgage backed...

How will sovereign debt markets evolve in the 21st century? We survey how the literature has responded to the eurozone debt crisis, placing “lessons learned” in historical perspective. The crisis featured: (i) the return of debt problems to advanced economies; (ii) a bank-sovereign...

This Article argues that the norms and legal practices of global finance in the arenas of sovereign debt and private wealth have led to a significant market failure, in particular the over-supply of sovereign borrowing and a related misallocation of global capital away from its most productive...

This paper analyses the Italian banking system, its historical foundation, present situation, and provides a strategic analysis based on its strengths, weaknesses, opportunities, and threats - SWOT. The analysis includes the impact of regulation on the Italian banks, and more specifically on the...

Episodes of debt accumulation have been a recurrent feature of the global economy over the past fifty years. Since 2010, emerging and developing economies have experienced another wave of historically large and rapid debt accumulation. Similar past debt buildups have often ended in widespread...

This paper studies external sovereign bonds as an asset class. We compile a new database of 220,000 monthly prices of foreign-currency government bonds traded in London and New York between 1815 (the Battle of Waterloo) and 2016, covering 91 countries. Our main insight is that, as in equity...

How will sovereign debt markets evolve in the 21st century? We survey how the literature has responded to the eurozone debt crisis, placing "lessons learned" in historical perspective. The crisis featured: (i) the return of debt problems to advanced economies; (ii) a bank-sovereign "doom-loop"...

This article is structured as follows: the first section is based on Reinhart and Rogoff’s seminal papers (Am Econ Rev 98(2):339–344, 2008a, b, Am Econ Rev 99(2):466–472, 2009a, This time is different: eight centuries of financial folly, Princeton University Press, Princeton, 2009b, Am...