Government Financial Assets and Debt Sustainability
نویسندگان
چکیده
منابع مشابه
Financial Intermediation and Government Debt Default
Recent empirical evidence suggests that the major cost of sovereign default lies in its effects on the domestic financial system, rather than any external sanctions. To explore this link, we extend the banking model of Gertler and Karadi (2011) to allow banks to hold risky long-term government debt, and then incorporate bank runs following Gertler and Kiyotaki (2013). Banks face an agency probl...
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What determines the sustainability of sovereign debt? In this paper, we develop a model where myopic governments seek electoral popularity but can nevertheless commit credibly to service external debt. They do not default when they are poor even though default costs are low because they would lose access to debt markets and be forced to reduce spending; they do not default when they become rich...
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ژورنال
عنوان ژورنال: IMF Working Papers
سال: 2017
ISSN: 1018-5941
DOI: 10.5089/9781484311059.001