Quarterly report
... Fixed income component In our previous report, we voiced our concern that inflation would pick up in the United States and Europe and opted for low modified duration to hedge against the attendant risk. US and European consumer price indices confirmed our expectations, rising significantly in the fi ...
... Fixed income component In our previous report, we voiced our concern that inflation would pick up in the United States and Europe and opted for low modified duration to hedge against the attendant risk. US and European consumer price indices confirmed our expectations, rising significantly in the fi ...
The benefits of GDP indexed bonds
... avoid sharp spending cuts and maybe even provided some leeway for additional spending that may have mitigated some of the worst effects of the crisis. 8. Those emerging market economies experiencing volatile growth and high levels of indebtedness (such as Brazil and Turkey) should find this instrume ...
... avoid sharp spending cuts and maybe even provided some leeway for additional spending that may have mitigated some of the worst effects of the crisis. 8. Those emerging market economies experiencing volatile growth and high levels of indebtedness (such as Brazil and Turkey) should find this instrume ...
Emerging Markets
... Natural resources: Emerging market countries have a disproportional share of natural resource wealth (although exceptions exist, such as Australia, Canada and Norway). Countries rich in natural resources tend to benefit as emerging markets industrialize. For example, Brazil should continue to be sel ...
... Natural resources: Emerging market countries have a disproportional share of natural resource wealth (although exceptions exist, such as Australia, Canada and Norway). Countries rich in natural resources tend to benefit as emerging markets industrialize. For example, Brazil should continue to be sel ...
Fiscal Responsibility Panel
... GDP will be needed to meet the debt service or debt to revenue targets within 5 years of achieving budget balance in 2018/19. This we believe would be a credible timescale to set, and should be reassuring to the domestic public as well as to investors and capital markets. Hopefully it could gain at ...
... GDP will be needed to meet the debt service or debt to revenue targets within 5 years of achieving budget balance in 2018/19. This we believe would be a credible timescale to set, and should be reassuring to the domestic public as well as to investors and capital markets. Hopefully it could gain at ...
Working Faper No. 792 Rudiger Dornbusch 1050
... Financial support was provided by a grant from the National Science Foundation. I wish to acknowledge helpful comments from Eliana Cardoso, Alberto Giovanninj, Jean Tirole and David Hsieh. The research reported here is part of the NBER's research program in International Studies. Any opinions expres ...
... Financial support was provided by a grant from the National Science Foundation. I wish to acknowledge helpful comments from Eliana Cardoso, Alberto Giovanninj, Jean Tirole and David Hsieh. The research reported here is part of the NBER's research program in International Studies. Any opinions expres ...
mmi14-Schularick 19104681 en
... From Beijing to Madrid to Washington, the risks of excessive borrowing feature prominently in the public debate. A seemingly simple lesson that many people drew from the financial crisis is that high debts harbor risks. However, it is much less evident which debts one should worry about. A priori, ma ...
... From Beijing to Madrid to Washington, the risks of excessive borrowing feature prominently in the public debate. A seemingly simple lesson that many people drew from the financial crisis is that high debts harbor risks. However, it is much less evident which debts one should worry about. A priori, ma ...
THE U.S. CURRENT ACCOUNT DEFICIT: NOTHING TO FEAR BUT
... and raised its dependence on foreign investors. Internationally, aging populations and robust growth have increased the amount of savings available. In many emerging markets, slow growth in domestic investment opportunities and fledgling financial systems incapable of handling this savings glut has ...
... and raised its dependence on foreign investors. Internationally, aging populations and robust growth have increased the amount of savings available. In many emerging markets, slow growth in domestic investment opportunities and fledgling financial systems incapable of handling this savings glut has ...
Ending over-lending: assessing systemic risk with - ECB
... country-level early-warning indicators. While the debt-to-income ratio has commonly been used to illustrate the association between high leverage and losses in credit and output, consumption versus savings decisions are over-looked. This shortcoming can be illustrated by way of a simple example. Say ...
... country-level early-warning indicators. While the debt-to-income ratio has commonly been used to illustrate the association between high leverage and losses in credit and output, consumption versus savings decisions are over-looked. This shortcoming can be illustrated by way of a simple example. Say ...
NBER WORKING PAPER SERIES DEFYING GRAVITY: Takeo Hoshi
... Indeed most of Japanese government debt is held by Japanese residents. Table 2 shows the distribution of JGB ownership by type of investor from 2005 to 2010. Looking at the column for 2010, the largest share of 39% is owned by Japanese commercial banks, including the Japan Post Bank. The insurance c ...
... Indeed most of Japanese government debt is held by Japanese residents. Table 2 shows the distribution of JGB ownership by type of investor from 2005 to 2010. Looking at the column for 2010, the largest share of 39% is owned by Japanese commercial banks, including the Japan Post Bank. The insurance c ...
Working Paper No. 801 - Levy Economics Institute of Bard College
... funding of capital market lending,” [19] which generally takes place outside the regular banking system [3, 28]. This definition highlights the activities of financial intermediaries that use short-term money market funding (sourced from global dollar markets) to fund long-term investment projects—n ...
... funding of capital market lending,” [19] which generally takes place outside the regular banking system [3, 28]. This definition highlights the activities of financial intermediaries that use short-term money market funding (sourced from global dollar markets) to fund long-term investment projects—n ...
The plan 1 provides a concrete mechanism to
... However, the Heads of State/Government accepted the Five Presidents Report with its more farreaching integration plans for economic governance. Commission President Juncker has now come forward with his two-stage proposals to complete Economic and Monetary Union and these provide much more detail to ...
... However, the Heads of State/Government accepted the Five Presidents Report with its more farreaching integration plans for economic governance. Commission President Juncker has now come forward with his two-stage proposals to complete Economic and Monetary Union and these provide much more detail to ...
The Political Economy of Shadow Banking: Debt
... funding of capital market lending,” [19] which generally takes place outside the regular banking system [3, 28]. This definition highlights the activities of financial intermediaries that use short-term money market funding (sourced from global dollar markets) to fund long-term investment projects—n ...
... funding of capital market lending,” [19] which generally takes place outside the regular banking system [3, 28]. This definition highlights the activities of financial intermediaries that use short-term money market funding (sourced from global dollar markets) to fund long-term investment projects—n ...
Crisis mismanagement in the US and Europe: impact on developing
... round of financial fragility that can compromise growth and stability in the coming years. This is particularly the case for the policies pursued in the US, given its role as the issuer of the key reserve currency. Developing countries (DCs)1 have been strongly affected both by the spillovers from t ...
... round of financial fragility that can compromise growth and stability in the coming years. This is particularly the case for the policies pursued in the US, given its role as the issuer of the key reserve currency. Developing countries (DCs)1 have been strongly affected both by the spillovers from t ...
GOVERNMENT DEVELOPMENT EXPENDITURE AND
... by 2019 if government does not manage to cut subsidies and limit the borrowing which is stated by Idris (2012). To our best knowledge, government debt incurred when government overspending be financed by borrowing in particular year. Besides, debt accumulation due to the government consistently run ...
... by 2019 if government does not manage to cut subsidies and limit the borrowing which is stated by Idris (2012). To our best knowledge, government debt incurred when government overspending be financed by borrowing in particular year. Besides, debt accumulation due to the government consistently run ...
Debt Overhangs: Past and Present
... government debt held by government-run old age support trust funds. This distinction has become much more important recently as the trust funds have massively expanded. Again, net debt data is not available on a long-dated cross country basis. However, per our arguments in the conclusions, the fact ...
... government debt held by government-run old age support trust funds. This distinction has become much more important recently as the trust funds have massively expanded. Again, net debt data is not available on a long-dated cross country basis. However, per our arguments in the conclusions, the fact ...
Asia-Pacific Development Journal Vol. 20, No. 2, December 2013
... However, a high level of accumulated debt has adverse implications for investment and economic growth. A broad rationalization of these effects is referred as the “debt overhang” theory. The theory asserts that if there is a probability that country’s future debt will be more than its repayment abil ...
... However, a high level of accumulated debt has adverse implications for investment and economic growth. A broad rationalization of these effects is referred as the “debt overhang” theory. The theory asserts that if there is a probability that country’s future debt will be more than its repayment abil ...
financial repression in the 21st century
... The first question is important because today some advanced countries were at risk of default on the debt during the recent financial crisis and had to implement government regulation trying to escape it, while their economies are contracting. Providing that the negative correlation between financia ...
... The first question is important because today some advanced countries were at risk of default on the debt during the recent financial crisis and had to implement government regulation trying to escape it, while their economies are contracting. Providing that the negative correlation between financia ...
NBER WORKING PAPER SERIES INTERNATIONAL EVIDENCE ON FISCAL SOLVENCY:
... emerging market countries than even a few years ago, and the need to view progress in addressing problematic levels of public debt in some countries against the backdrop of the buoyant conditions prevailing in financial markets in recent years and the robust growth of the world economy. Indeed, whet ...
... emerging market countries than even a few years ago, and the need to view progress in addressing problematic levels of public debt in some countries against the backdrop of the buoyant conditions prevailing in financial markets in recent years and the robust growth of the world economy. Indeed, whet ...
FM11 Ch 09 Instructors Manual
... and common stock. Short-term sources of capital consist of (1) spontaneous, noninterest-bearing liabilities such as accounts payable and accruals and (2) shortterm interest-bearing debt, such as notes payable. If the firm uses short-term interestbearing debt to acquire fixed assets rather than just ...
... and common stock. Short-term sources of capital consist of (1) spontaneous, noninterest-bearing liabilities such as accounts payable and accruals and (2) shortterm interest-bearing debt, such as notes payable. If the firm uses short-term interestbearing debt to acquire fixed assets rather than just ...
A Neokeynesian Balance of Payment Model. Study Case on
... by traditional theory of external accumulation (see Lane and Milesi-Ferretti (2000, 2002)). Under such hypothesis countries with a large external debt must have a surpluss of trade balance and by consequences a competitive exchange rate and a depreciation tendency, but this hypothesis is not verifie ...
... by traditional theory of external accumulation (see Lane and Milesi-Ferretti (2000, 2002)). Under such hypothesis countries with a large external debt must have a surpluss of trade balance and by consequences a competitive exchange rate and a depreciation tendency, but this hypothesis is not verifie ...
ACCA F9 S16 Notes
... lenders will require. The best way we can estimate this is to look at existing debt in the company and calculate the current cost. If the company has traded debt, we can do this by using the valuation theory (from Chapter 15) backwards! We know the current market value and the future receipts and ca ...
... lenders will require. The best way we can estimate this is to look at existing debt in the company and calculate the current cost. If the company has traded debt, we can do this by using the valuation theory (from Chapter 15) backwards! We know the current market value and the future receipts and ca ...
Defying Gravity: Can Japanese sovereign debt continue to increase
... of Japan. Many international financial institutions, credit rating agencies, and private-sector analysts agree over this assessment. Yet, the JGB interest rate has been low and stable. The 10-year JGB rate has been below 2% since 1999, and between 0.8% and 1.5% in the last few years. The rate is muc ...
... of Japan. Many international financial institutions, credit rating agencies, and private-sector analysts agree over this assessment. Yet, the JGB interest rate has been low and stable. The 10-year JGB rate has been below 2% since 1999, and between 0.8% and 1.5% in the last few years. The rate is muc ...
GDP-linked bonds and sovereign default
... used to price default risk. They find that GDP-linked bonds reduce the probability of default and therefore reduce the required return on the remaining conventional bonds. Ruban, Poon and Vonatsos (2008) develop this approach further by using a structural model of default based on a sovereign’s abil ...
... used to price default risk. They find that GDP-linked bonds reduce the probability of default and therefore reduce the required return on the remaining conventional bonds. Ruban, Poon and Vonatsos (2008) develop this approach further by using a structural model of default based on a sovereign’s abil ...
D I C
... beneficiaries of debt finance expenditures might not be part of the taxable cohort in future years because they are no longer in the labour force. Domestic debt could also lead to inflationary pressures by facilitating deficit financing. For this reason in some countries there are statutory limits o ...
... beneficiaries of debt finance expenditures might not be part of the taxable cohort in future years because they are no longer in the labour force. Domestic debt could also lead to inflationary pressures by facilitating deficit financing. For this reason in some countries there are statutory limits o ...
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.