Results 1 to 10 of about 81,387 (42)
Fiscal Rules and the Sovereign Default Premium
Social Science Research Network, 2022 We study fiscal rules using a sovereign default model. A debt-brake (spread-brake) rule imposes a ceiling on the fiscal deficit when the sovereign debt (spread) is above a threshold.
L. Martinez +2 more
semanticscholar +1 more source
Does economic complexity reduce the probability of a fiscal crisis?
World Development, 2023 Higher economic complexity of a country reduces the probability of suffering a fiscal crisis between 46% and 57%. Along with institutional factors, complexity is shown to be sufficient to describe the risk of facing episodes of fiscal distress.
Jose E. Gomez-Gonzalez +2 more
semanticscholar +1 more source
Household Debt Revaluation and the Real Economy: Evidence from a Foreign Currency Debt Crisis
The American Economic Review, 2020 We examine the consequences of a sudden increase in household debt burdens by exploiting variation in exposure to household foreign currency debt during Hungary’s late-2008 currency crisis.
Emil Verner, Győző Gyöngyösi
semanticscholar +1 more source
Financial Crises, Dollarization, and Lending of Last Resort in Open Economies
The American Economic Review, 2020 Foreign currency debt is considered a source of financial instability in emerging markets. We propose a theory in which liability dollarization arises from an insurance motive of domestic savers.
Luigi Bocola, G. Lorenzoni
semanticscholar +1 more source
Cross-border effects of prudential regulation: Evidence from the euro area
Journal of Financial Stability, 2021 We analyse the cross-border propagation of prudential regulation in the euro area. Using the Prudential Instruments Database (Cerutti et al., 2017b) and a unique confidential database on balance sheets items of euro-area financial institutions we ...
Fabio Franch +2 more
semanticscholar +1 more source
Self-Fulfilling Debt Crises: A Quantitative Analysis
The American Economic Review, 2019 This paper investigates the role of self-fulfilling expectations in sovereign bond markets. We consider a model of sovereign borrowing featuring endogenous debt maturity, risk-averse lenders, and self-fulfilling crises à la Cole and Kehoe (2000). In this
Luigi Bocola, Alessandro Dovis
semanticscholar +1 more source
Non-Performing Loans: What Matters in Addition to the Economic Cycle?
Social Science Research Network, 2013 Using a novel panel data set we study the macroeconomic determinants of nonperforming loans (NPLs) across 75 countries during the past decade. According to our dynamic panel estimates, the following variables are found to significantly affect NPL ratios:
Roland Beck +3 more
semanticscholar +1 more source
International Capital Flows: Private Versus Public Flows in Developing and Developed Countries
Social Science Research Network, 2022 Empirically, net capital inflows are pro-cyclical in developed countries and countercyclical in developing countries. That said, private inflows are pro-cyclical and public inflows are counter-cyclical in both groups of countries.
Yun Jung Kim, Jing Zhang
semanticscholar +1 more source
The Sovereign-Bank Nexus in Emerging Markets in the Wake of the COVID-19 Pandemic
IMF Working Papers, 2022 The COVID-19 pandemic has brought the relationship between sovereigns and banks—the socalled sovereign-bank nexus—in emerging market economies to the fore as bank holdings of domestic sovereign debt have surged.
M. Yenice +5 more
semanticscholar +1 more source
Rare Disasters, Financial Development, and Sovereign Debt
Journal of Finance, 2022 We propose a model of sovereign debt in which countries vary in their level of financial development, defined as the extent to which they can issue debt denominated in domestic currency in international capital markets.
Sergio Rebelo, Neng Wang
semanticscholar +1 more source