Abstract. The evaluation of structured credit products like baskets and collateralized debt obligations (CDOs) most often relies on the simulation of correlated default times for the underlying pool of credit instruments. Given the distribution of a default time vector one can find the distribution of the corresponding (cumulative) default quote path for a portfolio. In this note we show that t...

Equity Payout is ‘Net dividends of nonfarm, nonfinancial business’ (Table F.102, line 3), plus ‘Net dividends of farm business’ (Table F.7, line 24), minus ‘Net increase in corporate equities of nonfinancial business’ (F.101, line 35), minus ‘Proprietors’ net investment of nonfinancial business’ (F.101, line 39). Debt Repurchase is the negative of ‘Net increase in credit markets instruments of ...

The negative effects of a high level of government debt are now generally acknowledged. The extensive borrowing of past years has enlarged the share of interest payments in government spending, thus restricting the scope for future fiscal policy action. There is very little prospect of being able to initiate economic recovery by way of expansive fiscal policy. High deficits and rising debt rati...

In this paper we explore what impact, if any, government debts have on achieving the Millennium Development Goals for the Indian states. To fulfill the goals, national governments, especially in the developing world, have to undertake major investments in the social sector; but how much they will really be able to do so will depend on the conditions of their finances. For the Indian states we f...

I believe the greatest threat to the pursuit of genuine happiness and well-being is our current debt-money system. In the face of an international debt-crisis, it is remarkable that there is no serious discussion about the nature of money, or about how and who creates our money. While meaningful conversations about alternative measures of progress (e.g. Gross National Happiness, Genuine Progres...

This paper explains why domestic debt composition in some emerging economies is risky. To this end, it carries out a systematic analysis of the determinants of the socalled domestic original sin, which refers to the inability of emerging economies to borrow domestically in local currency, at long maturities and fixed interest rates. The paper builds on a large dataset compiled by the authors fr...

We use a dynamic game model of a two-country monetary union to study the impacts of an exogenous fall in aggregate demand, the resulting increase in public debt, and the consequences of a sovereign debt haircut for a member country or bloc of the union. In this union, the governments of participating countries pursue national goals when deciding on fiscal policies, whereas the common central ba...

On May 19th this year, the central bank governor of Sri Lanka confirmed that country could not repay its national debt due on April 18th in time (Jayasinghe & Pal, 2022). For first time, had defaulted sovereign since independence from Britain 1948. It also announced inability to continue paying for fuel July 6th, declared bankruptcy (Athas et al., This paper examined what led Lankan crisis ...