Search Results

Showing results 1 to 2 of approximately 2.

(refine search)
SORT BY: PREVIOUS / NEXT
Keywords:Domestic Debt 

Working Paper
Domestic Debt and Sovereign Defaults

This paper examines how domestic holdings of government debt affect sovereign default risk and government debt management. I develop a dynamic stochastic general equilibrium model with both external and domestic debt that endogenously generates output contraction upon default. Domestic holdings of government debt weaken investors' balance sheets and induce a contraction of credit and output upon default. I calibrate the model to the Argentinean economy and show that the model reproduces key empirical moments. Introducing domestic debt also yields relevant normative implications. While ...
International Finance Discussion Papers , Paper 1153

Working Paper
Selective Sovereign Defaults

Governments issue debt both domestically and abroad. This heterogeneity introduces the possibility for governments to operate selective defaults that discriminate across investors. Using a novel dataset on the legal jurisdiction of sovereign defaults that distinguishes between defaults under domestic law and default under foreign law, we show that selectiveness is the norm and that imports, credit, and output dynamics are different around different types of default. Domestic defaults are associated with contractions of credit and are more likely in countries with smaller credit markets. In ...
International Finance Discussion Papers , Paper 1239

FILTER BY year

FILTER BY Content Type

FILTER BY Author

FILTER BY Jel Classification

F34 2 items

F41 2 items

H63 2 items

FILTER BY Keywords

Domestic Debt 2 items

Credit 1 items

Credit Market 1 items

Debt Crises 1 items

External Debt 1 items

Imports 1 items

show more (4)

PREVIOUS / NEXT