pse11 Legrenzi new 15462675 en
... the overall credibility of the euro. In particular, as a pre-condition for admission to the euro, countries were required to respect a ceiling of 60% debt to GDP ratio, as well as a 3% de…cit to GDP ratio3 . It is important to emphasise that respecting these parameters does not necessarily imply sus ...
... the overall credibility of the euro. In particular, as a pre-condition for admission to the euro, countries were required to respect a ceiling of 60% debt to GDP ratio, as well as a 3% de…cit to GDP ratio3 . It is important to emphasise that respecting these parameters does not necessarily imply sus ...
armageddon usa? - Tullett Prebon
... become impossible to sustain. But no-one seems to have worked out how to manage an economy that is not debt-propelled. The snags with soaring debt are three-fold, and America has all three kinds of problem. First, debt can be a problem if it out-grows the ability of the borrower’s income to sustain ...
... become impossible to sustain. But no-one seems to have worked out how to manage an economy that is not debt-propelled. The snags with soaring debt are three-fold, and America has all three kinds of problem. First, debt can be a problem if it out-grows the ability of the borrower’s income to sustain ...
The fiscal impact of pension reform: economic effects and
... • The deficit is temporarily increased by creation of the buffer fund - the Demographic Reserve Fund – In 2004 0.15 percentage points of contribution is transferred to the DRF – At the end of 2003, assets of DRF were about 0.4% of GDP, invested mainly in government bonds – DRF will be used to financ ...
... • The deficit is temporarily increased by creation of the buffer fund - the Demographic Reserve Fund – In 2004 0.15 percentage points of contribution is transferred to the DRF – At the end of 2003, assets of DRF were about 0.4% of GDP, invested mainly in government bonds – DRF will be used to financ ...
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... In the present paper, we add to this an analysis of the consequences of endogenously triggered haircuts. This has some importance within the context of the Euro Area’s present policy problems as some countries like Greece or Cyprus may consider demanding another “haircut” after the first one, which ...
... In the present paper, we add to this an analysis of the consequences of endogenously triggered haircuts. This has some importance within the context of the Euro Area’s present policy problems as some countries like Greece or Cyprus may consider demanding another “haircut” after the first one, which ...
Economics of Monetary Union 10e
... – either the primary budget shows a sufficiently high surplus (t > g) – or money creation is sufficiently high in order to stabilize the debt - GDP ratio. – The latter option has been chosen by many Latin American countries during the 1980s, and more recently by some Eastern European countries. It h ...
... – either the primary budget shows a sufficiently high surplus (t > g) – or money creation is sufficiently high in order to stabilize the debt - GDP ratio. – The latter option has been chosen by many Latin American countries during the 1980s, and more recently by some Eastern European countries. It h ...
DATA ON CONTINGENT LIABILITIES OF THE GENERAL
... One-off guarantees are defined individually and the guarantor is not able to make a reliable estimate of the risk of calls. One-off guarantees are linked to debt instruments (e.g. loans, bonds). ...
... One-off guarantees are defined individually and the guarantor is not able to make a reliable estimate of the risk of calls. One-off guarantees are linked to debt instruments (e.g. loans, bonds). ...
Identifying the Holders of Traded Debt Securities
... However, securities may be held or traded through nonresident service providers (particularly those issued in foreign currency) or held directly. Custodians or dealers may also be unaware of the economic ownership in cases of securities under repo or held by nominees. For a discussion of reporting t ...
... However, securities may be held or traded through nonresident service providers (particularly those issued in foreign currency) or held directly. Custodians or dealers may also be unaware of the economic ownership in cases of securities under repo or held by nominees. For a discussion of reporting t ...
The long shadow of a fiscal expansion
... Second, we assess the long run consequences of this financing choice. We show that after the end of the fiscal stimulus, the off-balance sheet financial institutions continued to grow as local governments found themselves with powerful new tool to circumvent the financial controls on their budgets. ...
... Second, we assess the long run consequences of this financing choice. We show that after the end of the fiscal stimulus, the off-balance sheet financial institutions continued to grow as local governments found themselves with powerful new tool to circumvent the financial controls on their budgets. ...
NBER WORKING PAPER SERIES DEBT RELIEF AND FISCAL SUSTAINABILITY Sebastian Edwards 8939
... reaching a certain GDP per capita, countries tend to rely mostly on debt issued on commercial terms. Third, it assumes that the economy takes some time to reach the steady state. The model, thus, also focuses on the dynamic behavior of the key variables during the transition. And fourth, I explicitl ...
... reaching a certain GDP per capita, countries tend to rely mostly on debt issued on commercial terms. Third, it assumes that the economy takes some time to reach the steady state. The model, thus, also focuses on the dynamic behavior of the key variables during the transition. And fourth, I explicitl ...
Lessons from history
... had significant losses. However, emerging market debt was among the strongest performing categories in both the 1999–2000 and 2004–2006 periods. It was also notable that during the 2004–2006 period, not a single fixed income category had negative performance. A rising rate environment does not mean ...
... had significant losses. However, emerging market debt was among the strongest performing categories in both the 1999–2000 and 2004–2006 periods. It was also notable that during the 2004–2006 period, not a single fixed income category had negative performance. A rising rate environment does not mean ...
The Spectre of Mortgage Fraud: A PRIMER
... • Entitlements: political promises that be taken back – Social Security: $12 trillion? • 1935 benefits began at age 65, vs life expectancy of 58-62 (now 78-81) ...
... • Entitlements: political promises that be taken back – Social Security: $12 trillion? • 1935 benefits began at age 65, vs life expectancy of 58-62 (now 78-81) ...
“How to reduce debt costs in Southern Africa” , Johannesburg, 25/26
... The information and opinions in this report were prepared by Deutsche Bank AG or one of its affiliates (collectively “Deutsche Bank”). The information herein is believed by Deutsche Bank to be reliable and has been obtained from public sources believed to be reliable, but Deutsche Bank makes no repr ...
... The information and opinions in this report were prepared by Deutsche Bank AG or one of its affiliates (collectively “Deutsche Bank”). The information herein is believed by Deutsche Bank to be reliable and has been obtained from public sources believed to be reliable, but Deutsche Bank makes no repr ...
Fiscal Consequences of Paying Interest on Reserves
... to the present value of future taxes and seigniorage transfers that will be used to repay it. In equation (6), the left-hand side represents the net value of the central bank at the beginning of period t. This is represented by two components. The first component represents the value of holdings of ...
... to the present value of future taxes and seigniorage transfers that will be used to repay it. In equation (6), the left-hand side represents the net value of the central bank at the beginning of period t. This is represented by two components. The first component represents the value of holdings of ...
MODELING GOVERNMENT EXTERNAL DEBT
... and economic growth (Avramovic, 1964); the impact of exports, imports and debt services burden on demand for external debt (Alun, 1992). More specific studies on Indonesian external debt discuss some topics such as: the negative relationship between the foreign debt and deficit in current account (P ...
... and economic growth (Avramovic, 1964); the impact of exports, imports and debt services burden on demand for external debt (Alun, 1992). More specific studies on Indonesian external debt discuss some topics such as: the negative relationship between the foreign debt and deficit in current account (P ...
The National Debt: Who Bears Its Burden?
... The United States has been free of a national debt for only two years, 1834 and 1835. In its first year, 1790, the country faced a debt of $75 million. From FY1998 to FY2001, the federal government ran budget surpluses. Since then, the budget has returned to deficit, and the debt had risen to $5 tri ...
... The United States has been free of a national debt for only two years, 1834 and 1835. In its first year, 1790, the country faced a debt of $75 million. From FY1998 to FY2001, the federal government ran budget surpluses. Since then, the budget has returned to deficit, and the debt had risen to $5 tri ...
Government Finance Indicators: Truth and Myth
... Whatever the school of thought, the two headline indicators, deficit and debt as a percentage of GDP, have been scrutinised in most OECD countries to assess the health of government finances for many years. This has been even more true during the recent economic and financial crisis, showing signifi ...
... Whatever the school of thought, the two headline indicators, deficit and debt as a percentage of GDP, have been scrutinised in most OECD countries to assess the health of government finances for many years. This has been even more true during the recent economic and financial crisis, showing signifi ...
Risk, Return and Capital Budgeting
... asset and equity β’s and thus it is more difficult to use comparable firms’ data to determine the overall cost of capital for a specific project. The reason is that debt interest payments reduce taxes; thus, holding fixed the risk of the before-tax cash flows, more debt makes total after-tax cash fl ...
... asset and equity β’s and thus it is more difficult to use comparable firms’ data to determine the overall cost of capital for a specific project. The reason is that debt interest payments reduce taxes; thus, holding fixed the risk of the before-tax cash flows, more debt makes total after-tax cash fl ...
Archivo fuente en Word 97 - Casa de Bolsa Banorte Ixe
... Although Pemex has announced a huge increase in its E&P budget for the next six years, Tamsa’s management remains cautious: even if the budget looks promising, Pemex has not given any specifics on where, when and how much should be spent on the short term. Nevertheless, the company confirmed that Pe ...
... Although Pemex has announced a huge increase in its E&P budget for the next six years, Tamsa’s management remains cautious: even if the budget looks promising, Pemex has not given any specifics on where, when and how much should be spent on the short term. Nevertheless, the company confirmed that Pe ...
Moody`s Credit Opinion - (16 Dec 2015)
... improved fiscal position is mainly a result of increased revenues from taxes on property, domestic taxes on goods and services, and taxes on international trade and transactions. Next year, due to an uptick in expenditure, we expect a smaller fiscal surplus of 2.4% of GDP. The operating surpluses ha ...
... improved fiscal position is mainly a result of increased revenues from taxes on property, domestic taxes on goods and services, and taxes on international trade and transactions. Next year, due to an uptick in expenditure, we expect a smaller fiscal surplus of 2.4% of GDP. The operating surpluses ha ...
External and Domestic Debt
... consistent with a prudent degree of risk. Poor debt management poses risks for both the public and private sectors in the form of economic instability, insolvency, debt distress, and fiscal crisis. In order to prevent such eventuality, a government needs to identify the various risks to its debt sto ...
... consistent with a prudent degree of risk. Poor debt management poses risks for both the public and private sectors in the form of economic instability, insolvency, debt distress, and fiscal crisis. In order to prevent such eventuality, a government needs to identify the various risks to its debt sto ...
CUM AND THE BRAZILIAN ECONOMY SINCE THE EARLY 1990s Luiz Carlos Bresser-Pereira
... reaching R$ 0.80 that the monetary authorities decided to intervene. As a consequence, the Brazilian economy was headed to a serious balance of payments unbalance, which the new administration, beginning in January 1995, proved unable to correct in the next four years. The exchange rate was kept low ...
... reaching R$ 0.80 that the monetary authorities decided to intervene. As a consequence, the Brazilian economy was headed to a serious balance of payments unbalance, which the new administration, beginning in January 1995, proved unable to correct in the next four years. The exchange rate was kept low ...
spd04 Bohn-k 225540 en
... peacetime periods, with the exception of the Great Depression/New Deal era (1929-39), the 1980s, and the post-2001 period. One might even interpret the 1980s as hot phase of the Cold War and the post2001 period as the War on Terror, which would leave the Great Depression as the sole episode of peace ...
... peacetime periods, with the exception of the Great Depression/New Deal era (1929-39), the 1980s, and the post-2001 period. One might even interpret the 1980s as hot phase of the Cold War and the post2001 period as the War on Terror, which would leave the Great Depression as the sole episode of peace ...
Bohn-01April-screen 326805 en
... exponential decay over linear growth implies a zero limit for any r>0.5 This explains Trehan and Walsh’s (1988) result and the difference-stationarity result in Trehan-Walsh (1991). Trehan-Walsh’s (1991) cointegration result derives from a second observation: exponential debt growth is consistent wi ...
... exponential decay over linear growth implies a zero limit for any r>0.5 This explains Trehan and Walsh’s (1988) result and the difference-stationarity result in Trehan-Walsh (1991). Trehan-Walsh’s (1991) cointegration result derives from a second observation: exponential debt growth is consistent wi ...
Democratic Commissioners’ Views Is America’s trade deficit sustainable? The
... serious concerns about the stability of the dollar and of U.S. asset markets well before it reaches the point where net payments on the debt take up all the country’s resources. Tracking the size of a country’s net foreign debt and judging whether it is near the point of making the present trajector ...
... serious concerns about the stability of the dollar and of U.S. asset markets well before it reaches the point where net payments on the debt take up all the country’s resources. Tracking the size of a country’s net foreign debt and judging whether it is near the point of making the present trajector ...
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.