The Costs Of Default
DOWNLOAD
Download The Costs Of Default PDF/ePub or read online books in Mobi eBooks. Click Download or Read Online button to get The Costs Of Default book now. This website allows unlimited access to, at the time of writing, more than 1.5 million titles, including hundreds of thousands of titles in various foreign languages. If the content not found or just blank you must refresh this page
The Costs Of Default
DOWNLOAD
Author : Anatole Kaletsky
language : en
Publisher:
Release Date : 1985
The Costs Of Default written by Anatole Kaletsky and has been published by this book supported file pdf, txt, epub, kindle and other format this book has been release on 1985 with Business & Economics categories.
The Costs Of Sovereign Default
DOWNLOAD
Author : Eduardo Borensztein
language : en
Publisher:
Release Date : 2008
The Costs Of Sovereign Default written by Eduardo Borensztein and has been published by this book supported file pdf, txt, epub, kindle and other format this book has been release on 2008 with Bank failures categories.
This paper evaluates empirically four types of cost that may result from an international sovereign default: reputational costs, international trade exclusion costs, costs to the domestic economy through the financial system, and political costs to the authorities. It finds that the economic costs are generally significant but short-lived, and sometimes do not operate through conventional channels. The political consequences of a debt crisis, by contrast, seem to be particularly dire for incumbent governments and finance ministers, broadly in line with what happens in currency crises.
The Social Costs Of Sovereign Default
DOWNLOAD
Author : Juan P. Farah-Yacoub
language : en
Publisher:
Release Date : 2022
The Social Costs Of Sovereign Default written by Juan P. Farah-Yacoub and has been published by this book supported file pdf, txt, epub, kindle and other format this book has been release on 2022 with Debts, Public categories.
"This paper estimates the costs of sovereign defaults to a broader extent than has been done in the literature. Applying the synthetic control method to a sample of 131 defaults since 1900, it finds that, on average, growth in the first two years falls 3.6 and 2.4 percentage points short of the counterfactual. Still, after a decade, defaulters’ economic output per capita is nearly 17 percent below that of the counterfactual. Poverty headcounts - available since the 1980s—exceed their pre-crisis levels by roughly 30 percent. shortly after default and remain elevated a decade later. Variables proxying access to nutrition, energy, and health outcomes—available since the 1960s—suggest that standards of living decline sharply after sovereign defaults. For instance, on average, by year 10 after default, defaulters have 13 percent more infant deaths every year than the synthetic control. And surviving infants are expected to have shorter lives: life expectancy drops to 1.5 percent below the counterfactual."--Abstract.
The Economics Of Sovereign Debt And Default
DOWNLOAD
Author : Mark Aguiar
language : en
Publisher: Princeton University Press
Release Date : 2023-09-26
The Economics Of Sovereign Debt And Default written by Mark Aguiar and has been published by Princeton University Press this book supported file pdf, txt, epub, kindle and other format this book has been release on 2023-09-26 with Business & Economics categories.
An integrated approach to the economics of sovereign default Fiscal crises and sovereign default repeatedly threaten the stability and growth of economies around the world. Mark Aguiar and Manuel Amador provide a unified and tractable theoretical framework that elucidates the key economics behind sovereign debt markets, shedding light on the frictions and inefficiencies that prevent the smooth functioning of these markets, and proposing sensible approaches to sovereign debt management. The Economics of Sovereign Debt and Default looks at the core friction unique to sovereign debt—the lack of strong legal enforcement—and goes on to examine additional frictions such as deadweight costs of default, vulnerability to runs, the incentive to “dilute” existing creditors, and sovereign debt’s distortion of investment and growth. The book uses the tractable framework to isolate how each additional friction affects the equilibrium outcome, and illustrates its counterpart using state-of-the-art computational modeling. The novel approach presented here contrasts the outcome of a constrained efficient allocation—one chosen to maximize the joint surplus of creditors and government—with the competitive equilibrium outcome. This allows for a clear analysis of the extent to which equilibrium prices efficiently guide the government’s debt and default decisions, and of what drives divergences with the efficient outcome. Providing an integrated approach to sovereign debt and default, this incisive and authoritative book is an ideal resource for researchers and graduate students interested in this important topic.
The Costs Of Sovereign Default
DOWNLOAD
Author : Sandro C. Andrade
language : en
Publisher:
Release Date : 2017
The Costs Of Sovereign Default written by Sandro C. Andrade and has been published by this book supported file pdf, txt, epub, kindle and other format this book has been release on 2017 with categories.
We use stock market data to test cross-sectional implications of theories of sovereign default and provide a market-based estimate of sovereign default costs. We find that the stock prices of firms vulnerable to financial intermediation disruption, or firms more exposed to the government, are particularly sensitive to changes in sovereign credit spreads. This is consistent with theories in which default is costly because it disrupts financial intermediation and damages government reputation. Estimation of a structural valuation model indicates that the market prices stocks as if sovereign default has large effects on vulnerable stocks, translating to a 12% destruction of the value of their productive assets.
Costs Of Sovereign Defaults Restructuring Strategies Bank Distress And The Capital Inflow Credit Channel
DOWNLOAD
Author : Mr.Tamon Asonuma
language : en
Publisher: International Monetary Fund
Release Date : 2019-03-25
Costs Of Sovereign Defaults Restructuring Strategies Bank Distress And The Capital Inflow Credit Channel written by Mr.Tamon Asonuma and has been published by International Monetary Fund this book supported file pdf, txt, epub, kindle and other format this book has been release on 2019-03-25 with Business & Economics categories.
Sovereign debt restructurings are associated with declines in GDP, investment, bank credit, and capital flows. The transmission channels and associated output and banking sector costs depend on whether the restructuring takes place preemptively, without missing payments to creditors, or whether it takes place after a default has occurred. Post-default restructurings are associated with larger declines in bank credit, an increase in lending interest rates, and a higher likelihood of triggering a banking crisis than pre-emptive restructurings. Our local projection estimates show large declines in GDP, investment, and credit amplified by severe sudden stops and transmitted through a “capital inflow-credit channel”.
The Cost Of Default
DOWNLOAD
Author : Silvia Marchesi
language : en
Publisher:
Release Date : 2015
The Cost Of Default written by Silvia Marchesi and has been published by this book supported file pdf, txt, epub, kindle and other format this book has been release on 2015 with categories.
This paper studies the relationship between sovereign debt default and (short term) GDP growth taking into account the depth of a debt restructuring and distinguishing between commercial and official sovereign debt restructurings. Analyzing default episodes in 117 countries over the period 1975-2013, I find that, in the short term, defaults are correlated with significant contraction of output growth. Moreover, by controlling for both the occurrence and the magnitude of private and official defaults, I am able to detect a more lasting and negative link between default and growth (which eventually turns out to be positive but only for haircuts). In both cases I find evidence of a trade-off concerning the restructurings size. Higher haircuts, however, may have some benefits in the short-run, but in turn imply a negative stigma which lower growth over a longer period. Conversely, higher amount of official restructuring may have some costs in the short-run, but are associated to an increase in growth in the long run. Adopting an alternative specification, in which the dependent variable is a country's credit rating, I investigate whether variation in the borrowing costs (highly correlated with credit ratings) may be one of the channels behind the link between restructuring and growth. I find that, in the case of haircuts, an improvement in the borrowing conditions a few years after the restructuring may explain a growth recovery. For official restructurings the evidence is more mixed.
A General Equilibrium Model Of Sovereign Default And Business Cycles
DOWNLOAD
Author : Mr.Enrique G. Mendoza
language : en
Publisher: International Monetary Fund
Release Date : 2011-07-01
A General Equilibrium Model Of Sovereign Default And Business Cycles written by Mr.Enrique G. Mendoza and has been published by International Monetary Fund this book supported file pdf, txt, epub, kindle and other format this book has been release on 2011-07-01 with Business & Economics categories.
Emerging markets business cycle models treat default risk as part of an exogenous interest rate on working capital, while sovereign default models treat income fluctuations as an exogenous endowment process with ad-noc default costs. We propose instead a general equilibrium model of both sovereign default and business cycles. In the model, some imported inputs require working capital financing; default on public and private obligations occurs simultaneously. The model explains several features of cyclical dynamics around default triggers an efficiency loss as these inputs are replaced by imperfect substitutes; and default on public and private obligations occurs simultaneously. The model explains several features of cyclical dynamics around deraults, countercyclical spreads, high debt ratios, and key business cycle moments.
Sovereign Debt
DOWNLOAD
Author : Rob Quail
language : en
Publisher: John Wiley & Sons
Release Date : 2011-02-25
Sovereign Debt written by Rob Quail and has been published by John Wiley & Sons this book supported file pdf, txt, epub, kindle and other format this book has been release on 2011-02-25 with Business & Economics categories.
An intelligent analysis of the dangers, opportunities, and consequences of global sovereign debt Sovereign debt is growing internationally at a terrifying rate, as nations seek to prop up their collapsing economies. One only needs to look at the sovereign risk pressures faced by Greece, Spain, and Ireland to get an idea of how big this problem has become. Understanding this dilemma is now more important than ever, that's why Robert Kolb has compiled Sovereign Debt. With this book as your guide, you'll gain a better perspective on the essential issues surrounding sovereign debt and default through discussions of national defaults, systemic risk, associated costs, and much more. Historical studies are also included to provide a realistic framework of reference. Contains up-to-date research and analysis on sovereign debt from today's leading practitioners and academics Details the dangers of defaults and their associated systemic risks Explores the past, present, and future of sovereign debt The repercussions of a national default are all-encompassing as global markets are intricately interwoven in the modern world. Sovereign Debt examines what it will take to overcome the challenges of this market and how you can deal with the uncertainty surrounding it.
The Costs Of Sovereign Default
DOWNLOAD
Author : Benjamin Hébert
language : en
Publisher: International Monetary Fund
Release Date : 2016
The Costs Of Sovereign Default written by Benjamin Hébert and has been published by International Monetary Fund this book supported file pdf, txt, epub, kindle and other format this book has been release on 2016 with Debts, Public categories.
We estimate the causal effect of sovereign default on the equity returns of Argentine firms. We identify this effect by exploiting changes in the probability of Argentine sovereign default induced by legal rulings in the case of Republic of Argentina v. NML Capital. We find that a 10% increase in the probability of default causes a 6% decline in the value of Argentine equities and a 1% depreciation of a measure of the exchange rate. We examine the channels through which a sovereign default may affect the economy.