منابع مشابه
Liquidity Constrained Markets versus Debt Constrained Markets
This paper compares two different models in a common environment. The first model has liquidity constraints in that consumers save a single asset that they cannot sell short. The second model has debt constraints in that consumers cannot borrow so much that they would want to default, but is otherwise a standard complete markets model. Both models share the features that individuals are unable ...
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We examine the nature of debt contracts when repayment of debt cannot be fully enforced. We study outcomes an infinite-horizon economy in which some individuals have access to a productive, intertemporal technology. Individuals without access to the technology must lend their savings to the rest. Borrowers can default on their debt at any time: lenders can capture a fraction of their investment...
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We develop a multicountry model in which default in one country triggers default in other countries. Countries are linked to one another by borrowing from and renegotiating with common lenders with concave payoffs. A foreign default increases incentives to default at home because it makes new borrowing more expensive and defaulting less costly. Foreign defaults tighten home bond prices because ...
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The widely used short-term debt such as overnight repos and commercial paper is regarded as one of the main sources of instability leading to the distress of many nancial institutions during the nancial crisis of 2007-2008. What explains the popularity of shortterm debt in nancing asset market investments? Geanakoplos (2010) presents a dynamic model of the joint equilibrium of asset markets ...
متن کاملDerivative markets for debt market development Background paper for IFC’s Developing domestic debt markets – A manual for policy makers
2 The choices for policy makers of markets and products 4 2.1 Trading venue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 2.2 Clearing and settlement . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 2.2.1 Netting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 2.2.2 Counterparty credit risk . . . . . . . . . . . . . . . . . . . . . . . . 4 2....
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ژورنال
عنوان ژورنال: Finance and Society
سال: 2016
ISSN: 2059-5999
DOI: 10.2218/finsoc.v2i1.1664