The Economics of Sovereign Debt and Default (eBook)

Mark Aguiar, Manuel Amador (Autoren)

eBook Download: PDF

2021
200 Seiten
Princeton University Press (Verlag)
978-0-691-18924-6 (ISBN)

Infos

An integrated approach to the economics of sovereign defaultFiscal crises and sovereign default repeatedly threaten the stability and growth of economies around the world. Mark Aguiar and Manuel Amador provide a unified and tractable theoretical framework that elucidates the key economics behind sovereign debt markets, shedding light on the frictions and inefficiencies that prevent the smooth functioning of these markets, and proposing sensible approaches to sovereign debt management.The Economics of Sovereign Debt and Default looks at the core friction unique to sovereign debt-the lack of strong legal enforcement-and goes on to examine additional frictions such as deadweight costs of default, vulnerability to runs, the incentive to "e;dilute"e; existing creditors, and sovereign debt's distortion of investment and growth. The book uses the tractable framework to isolate how each additional friction affects the equilibrium outcome, and illustrates its counterpart using state-of-the-art computational modeling. The novel approach presented here contrasts the outcome of a constrained efficient allocation-one chosen to maximize the joint surplus of creditors and government-with the competitive equilibrium outcome. This allows for a clear analysis of the extent to which equilibrium prices efficiently guide the government's debt and default decisions, and of what drives divergences with the efficient outcome.Providing an integrated approach to sovereign debt and default, this incisive and authoritative book is an ideal resource for researchers and graduate students interested in this important topic.

Produkt-Details

• Erscheint lt. Verlag: 21.12.2021
• Reihe/Serie: CREI Lectures in Macroeconomics
• Reihe/Serie: CREI Lectures in Macroeconomics
• Zusatzinfo: 16 b/w illus. 5 tables.
• Sprache: englisch
• Themenwelt: Sozialwissenschaften ► Politik / Verwaltung ► Staat / Verwaltung
• Themenwelt: Wirtschaft ► Volkswirtschaftslehre ► Makroökonomie
• Themenwelt: Wirtschaft ► Volkswirtschaftslehre ► Wirtschaftspolitik
• Schlagworte: 1997 Asian financial crisis • Auction • balance of trade • Bank Rate • Bond (finance) • Bond Market • Capitalism • Capital Market • Central Bank • Competition (economics) • Consumer Price Index • Consumption (Economics) • Convergence (economics) • Coordination failure (economics) • Cost of capital • Credit Default Swap • Credit (finance) • Creditor • credit risk • Currency • debt • Debt Crisis • Debt Issue • debt limit • Debt Overhang • Debt ratio • Default (finance) • Economic equilibrium • Economic Liberalization • Economic planning • Economic Policy • Economics • economy • Equity Market • Equity ratio • European Debt Crisis • Eurozone • Exchange Rate • External Debt • Finance • Financial Account • Financial Crisis • Financial crisis of 2007–08 • Financial Engineering • financial fragility • Financial Times • Fiscal Policy • Foreign Direct Investment • foreign exchange reserves • Government bond • Government budget • Government budget balance • Government Debt • Haircut (finance) • Hedge (finance) • Hedge Fund • High-yield debt • Incremental capital-output ratio • Inflation • institutional investor • insurance • Interest Rate • International Monetary Fund • Investment • Investment goods • Macroeconomics • Market Economy • market liquidity • Market Mechanism • Market Price • Market Value • Money Management • money market • Neoclassical Economics • Net capital outflow • Net foreign assets • Payment • Political Economy • price change • Probability of Default • Profit (economics) • Public Finance • Real interest rate • repayment • Return on Capital • Revaluation of fixed assets • Risk Premium • Risk-Return Tradeoff • Securitization • Stock Market • Stock market index • Supply (economics) • Swap (finance) • tax revenue • Trade Credit • Trader (finance) • Trading nation • United States Treasury security • World Bank • World Economy
• ISBN-10: 0-691-18924-2 / 0691189242
• ISBN-13: 978-0-691-18924-6 / 9780691189246