Showing 61 - 70 of 102,598
In this paper, we present data on trends over time in government debt financing in Japan since 2010 with emphasis on the importance of foreign holders and speculate about the determinants of those trends. We find that Japanese government securities were held primarily by domestic holders until...
Persistent link: https://www.econbiz.de/10010333541
effectiveness indicators, external debt, external reserves, and default history. …
Persistent link: https://www.econbiz.de/10011604757
debt contract is limited? Contrary to conventional wisdom, we argue that temporary market exclusion after default is costly … government's market power mitigates the problem of limited commitment, by making default a more costly option. Consequently, it …
Persistent link: https://www.econbiz.de/10011943315
. I analyze the value of a default-risky sovereign bond in a setting in which foreign trade is reduced in case the country …
Persistent link: https://www.econbiz.de/10010263080
default mostly selectively. We propose a theory to rationalize these observations. A government chooses the optimal … less costly than raising taxes, but it is subject to default risk due to the government's limited commitment. A … quantitative, calibrated model with two shocks and two debts replicates well debt-to-GDP ratios, default frequencies, cyclical …
Persistent link: https://www.econbiz.de/10014581761
We present a theory of determinants of sovereign debt stability on foreign and domestic markets. Besides the two traditional factors - debt size and output contractions, we highlight the role of the third factor: distortionary tax, which hinders the government's ability to freely raise revenues....
Persistent link: https://www.econbiz.de/10014581816
This paper surveys recent economic and legal literature on sovereign debt in light of the COVID-19 shock. Most of the core theoretical contributions we review across the two disciplines hinge on immunity, and the sovereign borrower's consequent inability to commit to repay foreign creditors, as...
Persistent link: https://www.econbiz.de/10013432968
financial assistance has counteracting effects on the default incentives of governments. On the one hand, financial assistance … accumulate higher debt levels. To assess the overall effect of financial assistance on the probability of default we construct a … quantitative model of endogenous credit structure and sovereign default that allows for self-fulfilling expectations of default …
Persistent link: https://www.econbiz.de/10010312972
puzzles about sovereign default and the working out of defaults. We conclude by suggesting possible avenues for new research …
Persistent link: https://www.econbiz.de/10014374436
This paper explores a natural connection between fiscal multipliers and foreign holdings of public debt. Although fiscal expansions can raise domestic economic activity through various channels, they can also have crowding-out effects if the resources used to acquire public debt reduce domestic...
Persistent link: https://www.econbiz.de/10012142099