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Explaining Foreign Holdings of Asia's Debt Securities : The Feldstein-Horioka Paradox Revisited

Horioka, Charles Yuji - 2015

the Eurozone economies, the US, and developing Asia showing relatively weak home bias and advanced Asia, especially Japan … capital has been flowing from the US and the Eurozone economies to both advanced Asia (especially Japan) and developing Asia … reasons. The main reason in the case of advanced Asia (especially Japan) appears to be higher risk-adjusted returns, whereas …

Persistent link: https://www.econbiz.de/10013012122

The relationship between debt and output

Kim, Yun Jung; Zhang, Jing - 2020

In this paper we empirically explore the relationship between debt and output in a panel of 72 countries over the period 1970-2014 using a vector autoregression (VAR). We document two puzzling empirical findings that contrast with what is predicted by a standard small open economy model by...

Persistent link: https://www.econbiz.de/10012315471

Modelling monetary and fiscal governance in the wake of the sovereign debt crisis in Europe

Herzog, Bodo - In: Economies : open access journal 4 (2016) 2, pp. 1-11

This paper analyzes different government debt relief programs in the European Monetary Union. I build a model and study different options ranging from debt relief to the European Stability Mechanism (ESM). The analysis reveals the following: First, patient countries repay debt, while impatient...

Persistent link: https://www.econbiz.de/10011499402

External Liabilities and Crises

Catão, Luis - 2013

We examine the determinants of external crises, focusing on the role of foreign liabilities and their composition. Using a variety of statistical tools and comprehensive data spanning 1970-2011, we find that the ratio of net foreign liabilities (NFL) to GDP is a significant crisis predictor, and...

Persistent link: https://www.econbiz.de/10013080853

Can this time be different? : policy options in times of rising debt

Kose, M. Ayhan; Nagle, Peter; Ohnsorge, Franziska; … - 2020 - This version: March 2020

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...

Persistent link: https://www.econbiz.de/10012195063

Fiscal multipliers and foreign holdings of public debt

Broner, Fernando; Clancy, Daragh; Erce, Aitor; Martin, … - 2019

smaller than one when the foreign share is low, such as in the U.S. in the 1950's and 1960's and Japan today, and larger than …

Persistent link: https://www.econbiz.de/10012142099

External liabilities and crises

Catão, Luis A.V.; Milesi-Ferretti, Gian Maria - In: Journal of International Economics 94 (2014) 1, pp. 18-32

We examine the determinants of external crises, focusing on the role of foreign liabilities and their composition. Using a variety of statistical tools and comprehensive data spanning 1970–2011, we find that the ratio of net foreign liabilities to GDP is a significant crisis predictor. This is...

Persistent link: https://www.econbiz.de/10011056377

Banks Matter in Eurozone Debt Crisis

Wind, Serge L. - 2011

The eurozone sovereign debt crisis, characterized by enormous debt burdens faced by its weakest economies, has also induced a parallel credit crunch and illiquidity concerns for European banks. Bank holdings of sovereign debt issued by peripheral eurozone countries have dropped in value and are...

Persistent link: https://www.econbiz.de/10013117156

Domestic debt and sovereign defaults

Mallucci, Enrico - 2015

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...

Persistent link: https://www.econbiz.de/10011459391

A viable insolvency procedure for sovereigns (VIPS) in the euro area

Fuest, Clemens; Heinemann, Friedrich; Schröder, Christoph - 2014

A mechanism to restructure the debt of an insolvent euro country is a missing element in the emerging institutional architecture of the euro area. The introduction of an insolvency procedure for sovereigns faces a dilemma: In the foreseeable future, its introduction would risk pushing Europe...

Persistent link: https://www.econbiz.de/10010394484