government debt. The safest governments inefficiently restrict the amount of high quality debt that could be used as collateral …"We analyze contagious sovereign debt crises in financially integrated economies. Under financial integration banks … optimally diversify their holdings of sovereign debt in an effort to minimize the costs with respect to an individual country …

government debt. The safest governments inefficiently restrict the amount of high quality debt that could be used as collateral …We analyze contagious sovereign debt crises in financially integrated economies. Under financial integration banks … optimally diversify their holdings of sovereign debt in an effort to minimize the costs with respect to an individual country …

mit Ursachen, Wirkungen und möglichen Auswegen aus dem Teufelskreis wachsender Schulden zu befassen. In einer Rückschau …

foreign lenders consider loans from domestic lenders as firm collateral. This implies that their lending supply is positively … associated with the volume of capital a firm is able to borrow from domestic lenders (collateral effect). On the other hand, the … supply (competition effect). Two different cases are then possible. If foreign lenders are able, in spite of the collateral …

required to repay debt and finance new investments when the economy is hit by a negative shock. Moreover, the equilibrium may …