What`s changed in the international financial system and its
... — with US$750 billion pledged (although not yet fully committed) to the IMF. Some US$250 billion has already been issued to all IMF member countries (although not yet converted) in the form of SDRs, 6 the IMF’s reserve asset. For the remainder, industrialized and reserve-rich governments are lending ...
... — with US$750 billion pledged (although not yet fully committed) to the IMF. Some US$250 billion has already been issued to all IMF member countries (although not yet converted) in the form of SDRs, 6 the IMF’s reserve asset. For the remainder, industrialized and reserve-rich governments are lending ...
Cyclicality of Credit Supply: Firm Level Evidence
... methodology relies on within-firm variation in debt issuance, so is less sensitive to this concern. There is a literature that focuses on exogenous shocks to the bank credit supply in order to establish causal effect between availability of bank credit and firms’ activity. Notably, Peek and Rosengre ...
... methodology relies on within-firm variation in debt issuance, so is less sensitive to this concern. There is a literature that focuses on exogenous shocks to the bank credit supply in order to establish causal effect between availability of bank credit and firms’ activity. Notably, Peek and Rosengre ...
Choice of comparable firms for multiple valuation
... the industry approach The SARD approach is able to cater for, in principle, an infinite number of proxies for profitability, growth and risk The SARD approach is less sensitive to sample size than the industry approach The SARD approach is able to tailor the selection variables to fit the need of an ...
... the industry approach The SARD approach is able to cater for, in principle, an infinite number of proxies for profitability, growth and risk The SARD approach is less sensitive to sample size than the industry approach The SARD approach is able to tailor the selection variables to fit the need of an ...
Financing for Development and Small Island - UN
... This paper provides a snapshot of development financing in small island developing States (SIDS). It aims to inform and reinvigorate international policy debates around how SIDS can finance – and meet – the world’s new sustainable development agenda, the SDGs (Sustainable Development Goals). This di ...
... This paper provides a snapshot of development financing in small island developing States (SIDS). It aims to inform and reinvigorate international policy debates around how SIDS can finance – and meet – the world’s new sustainable development agenda, the SDGs (Sustainable Development Goals). This di ...
AGU, SAMUEL CHUKWUAGOZIEM - University Of Nigeria Nsukka
... likely to have investment opportunities with rate of return higher than that of their counterparts in developed economies. This becomes effective as long as borrowed funds and some internally ploughed back funds are properly utilized for productive investment, and the country does not suffer from ma ...
... likely to have investment opportunities with rate of return higher than that of their counterparts in developed economies. This becomes effective as long as borrowed funds and some internally ploughed back funds are properly utilized for productive investment, and the country does not suffer from ma ...
Cash Available Segment
... surpluses or deficits before borrowing on a LOC… Implications for cash flow liquidity. ...
... surpluses or deficits before borrowing on a LOC… Implications for cash flow liquidity. ...
Optimal Government Debt Maturity under Limited Commitment
... anticipate that the government lacking commitment will pursue future policies which increase future short-term interest rates, thereby diluting their claims. In this case, households require a higher ex-ante interest rate (relative to commitment) to induce them to lend long-term to the government. A ...
... anticipate that the government lacking commitment will pursue future policies which increase future short-term interest rates, thereby diluting their claims. In this case, households require a higher ex-ante interest rate (relative to commitment) to induce them to lend long-term to the government. A ...
Testing the Trade Off and Pecking Order Models of Capital Structure
... merger within estimation periods. After analysing over a large sample of data set they find that, in their sample period's external financing is heavily used, which is not consistent with the findings of Myers (2001). They also find that in the external financing equity financing on an average excee ...
... merger within estimation periods. After analysing over a large sample of data set they find that, in their sample period's external financing is heavily used, which is not consistent with the findings of Myers (2001). They also find that in the external financing equity financing on an average excee ...
Greece: Preliminary Debt Sustainability Analysis
... rates levied on a narrow base and on ad hoc spending cuts not supported by underlying structural reforms, as detailed in Box 1. With tax compliance rates falling precipitously and discretionary spending already severely compressed, staff believes that the additional adjustment needed to allow Greece ...
... rates levied on a narrow base and on ad hoc spending cuts not supported by underlying structural reforms, as detailed in Box 1. With tax compliance rates falling precipitously and discretionary spending already severely compressed, staff believes that the additional adjustment needed to allow Greece ...
Growth in the shadow of expropriation"
... In this paper we present a tractable growth model that highlights the interaction of political economy frictions, tax policy, and capital flows in a small open economy. We augment the standard neoclassical growth model with two frictions. First, there is limited commitment on the part of the domesti ...
... In this paper we present a tractable growth model that highlights the interaction of political economy frictions, tax policy, and capital flows in a small open economy. We augment the standard neoclassical growth model with two frictions. First, there is limited commitment on the part of the domesti ...
US CDS - CIREQ
... height of the crisis the cost of the five-year protection was 100 bps, and it has traded around 20 bps since 2014. Is the U.S. default so likely, or is the expected loss so severe to justify such premiums? According to basic reasoning, the answer would be no. For instance, some observers believe tha ...
... height of the crisis the cost of the five-year protection was 100 bps, and it has traded around 20 bps since 2014. Is the U.S. default so likely, or is the expected loss so severe to justify such premiums? According to basic reasoning, the answer would be no. For instance, some observers believe tha ...
Sovereign Debt Relief and its Aftermath
... claims held by investors.6 On this basis, a reduction in the debt level should be followed by a period of higher growth.7 However, a substantial related literature suggests that a default or restructuring can cause reputational damage and trigger sanctions and output losses (e.g., Eaton and Gersovit ...
... claims held by investors.6 On this basis, a reduction in the debt level should be followed by a period of higher growth.7 However, a substantial related literature suggests that a default or restructuring can cause reputational damage and trigger sanctions and output losses (e.g., Eaton and Gersovit ...
Historical Patterns of Public Debt – Evidence From a New
... direction of the underlying debt ratio. In such situations, breaks were implemented in the HPDD. These are clearly highlighted in the dataset.7 To facilitate comparison of various country groups over time, medians and PPP GDPweighted averages were computed. We did not use simple averages, as they ma ...
... direction of the underlying debt ratio. In such situations, breaks were implemented in the HPDD. These are clearly highlighted in the dataset.7 To facilitate comparison of various country groups over time, medians and PPP GDPweighted averages were computed. We did not use simple averages, as they ma ...
Full Text ( Final Version , 188kb )
... leave them positive bequests in order to alleviate the increased future tax burden. As a result current generations do not perceive the government debt as net wealth, and hence they don’t increase current consumption leaving unaffected the aggregate demand. Furthermore, Barro assessed the impact of ...
... leave them positive bequests in order to alleviate the increased future tax burden. As a result current generations do not perceive the government debt as net wealth, and hence they don’t increase current consumption leaving unaffected the aggregate demand. Furthermore, Barro assessed the impact of ...
Market Discipline and Subordinated Debt: A Review of
... be perceived as a supervisory failure, creating incentives to avoid regulatory recognition of problems in the hope they will resolve themselves. By explicitly tying mandated regulatory intervention to subordinated debt signals, proponents of this approach seek to prevent unwise forbearance, in effec ...
... be perceived as a supervisory failure, creating incentives to avoid regulatory recognition of problems in the hope they will resolve themselves. By explicitly tying mandated regulatory intervention to subordinated debt signals, proponents of this approach seek to prevent unwise forbearance, in effec ...
Overborrowing and Systemic Externalities in the Business Cycle†
... pressure on the price of nontradables, which drags down the real exchange rate. This leads to a further tightening of the credit constraint, setting in motion Fisher’s debt deflation channel by which declines in consumption, the real exchange rate, and access to foreign financing mutually reinforce ...
... pressure on the price of nontradables, which drags down the real exchange rate. This leads to a further tightening of the credit constraint, setting in motion Fisher’s debt deflation channel by which declines in consumption, the real exchange rate, and access to foreign financing mutually reinforce ...
The Macroeconomic Transition to High Household Debt Jeffrey R. Campbell Zvi Hercowitz
... amortizes. The implied forced savings reflected the desire of the Roosevelt administration to reduce the likelihood of a mass default of highly-leveraged mortgagees, as occurred at the beginning of the Great Depression. A host of financial regulations supported this policy. The most prominent gave t ...
... amortizes. The implied forced savings reflected the desire of the Roosevelt administration to reduce the likelihood of a mass default of highly-leveraged mortgagees, as occurred at the beginning of the Great Depression. A host of financial regulations supported this policy. The most prominent gave t ...
Inflation Risk Management in Project Finance
... Immunization against interest rate and / or currency risk can be achieved with duration matching, creating a zero duration gap, so ensuring that a change in interest rates will not affect equity value. Since duration declines across time – as debt approaches its maturity – exposure to risk peaks whe ...
... Immunization against interest rate and / or currency risk can be achieved with duration matching, creating a zero duration gap, so ensuring that a change in interest rates will not affect equity value. Since duration declines across time – as debt approaches its maturity – exposure to risk peaks whe ...
Structural Models of Credit Risk are Useful: Evidence
... Table IV reports the average value of the coefficients and their t-statistics calculated from their cross-sectional standard deviation.7 A number of points are worth noting. Both factors are significant for the whole sample and for most of the rating categories. For the whole sample, a one percent ...
... Table IV reports the average value of the coefficients and their t-statistics calculated from their cross-sectional standard deviation.7 A number of points are worth noting. Both factors are significant for the whole sample and for most of the rating categories. For the whole sample, a one percent ...
pse09 van der Ploeg 9563581 en
... permanent rise in public spending. This policy of borrowing, then saving and finally living of the return on the SWF thus transforms an anticipated, temporary windfall revenue into a ...
... permanent rise in public spending. This policy of borrowing, then saving and finally living of the return on the SWF thus transforms an anticipated, temporary windfall revenue into a ...
Financing US Debt: Is There Enough Money in the World and at
... official purchases of Treasuries and the Federal Reserve’s balance sheet expansion under its large-scale asset purchases (LSAP) have that same quantitative impact. Given these results, and consensus projections for growth, budget deficits and interest rates, we conclude that it is technically possib ...
... official purchases of Treasuries and the Federal Reserve’s balance sheet expansion under its large-scale asset purchases (LSAP) have that same quantitative impact. Given these results, and consensus projections for growth, budget deficits and interest rates, we conclude that it is technically possib ...
2015-16 - University of Glasgow
... rendered trivial through the application of Ricardian Equivalence. When optimal monetary and fiscal policy are considered then the analysis is usually based on a single benevolent policy maker jointly controlling both monetary and fiscal policy instruments (Benigno and Woodford (2003), Schmitt-Grohe ...
... rendered trivial through the application of Ricardian Equivalence. When optimal monetary and fiscal policy are considered then the analysis is usually based on a single benevolent policy maker jointly controlling both monetary and fiscal policy instruments (Benigno and Woodford (2003), Schmitt-Grohe ...
Download attachment
... difficulties. As Exhibit 5 illustrates, the industry as a whole appears to have sufficient surplus funds, or dry powder. The median of dry powder as a proportion of total funds raised over the last five years is 56 percent. With significantly reduced investment levels, this dry powder could last for ...
... difficulties. As Exhibit 5 illustrates, the industry as a whole appears to have sufficient surplus funds, or dry powder. The median of dry powder as a proportion of total funds raised over the last five years is 56 percent. With significantly reduced investment levels, this dry powder could last for ...
Determinants of Firm`s Financial Leverage: A Critical
... structure include the underlying risk of the firm’s assets, the maturity of the debt, the ability of debt-holders to force default for a given level of firm value, and the incremental bankruptcy costs conditional on default. MacKay (2003) investigated whether the real flexibility in firm’s technolog ...
... structure include the underlying risk of the firm’s assets, the maturity of the debt, the ability of debt-holders to force default for a given level of firm value, and the incremental bankruptcy costs conditional on default. MacKay (2003) investigated whether the real flexibility in firm’s technolog ...
3040.03.04 fin statements
... Some of these assets are financed by increases in current liabilities such as accruals and payables The difference must be financed by other forms of financing ...
... Some of these assets are financed by increases in current liabilities such as accruals and payables The difference must be financed by other forms of financing ...
Government debt
Government debt (also known as public debt, national debt and sovereign debt) is the debt owed by a central government. (In federal states, ""government debt"" may also refer to the debt of a state or provincial, municipal or local government.) By contrast, the annual ""government deficit"" refers to the difference between government receipts and spending in a single year, that is, the increase of debt over a particular year.Government debt is one method of financing government operations, but it is not the only method. Governments can also create money to monetize their debts, thereby removing the need to pay interest. But this practice simply reduces government interest costs rather than truly canceling government debt, and can result in hyperinflation if used unsparingly.Governments usually borrow by issuing securities, government bonds and bills. Less creditworthy countries sometimes borrow directly from a supranational organization (e.g. the World Bank) or international financial institutions.As the government draws its income from much of the population, government debt is an indirect debt of the taxpayers. Government debt can be categorized as internal debt (owed to lenders within the country) and external debt (owed to foreign lenders). Another common division of government debt is by duration until repayment is due. Short term debt is generally considered to be for one year or less, long term is for more than ten years. Medium term debt falls between these two boundaries. A broader definition of government debt may consider all government liabilities, including future pension payments and payments for goods and services the government has contracted but not yet paid.