02773nam 2200577Ia 450 991046225790332120200520144314.01-4755-2939-21-4755-4841-9(CKB)2670000000278910(EBL)1606839(SSID)ssj0000941830(PQKBManifestationID)11967091(PQKBTitleCode)TC0000941830(PQKBWorkID)10964213(PQKB)10291529(MiAaPQ)EBC1606839(Au-PeEL)EBL1606839(CaPaEBR)ebr10627131(OCoLC)800131332(EXLCZ)99267000000027891020121206d2012 uy 0engurcn|||||||||txtccrIntertwined sovereign and bank solvencies in a model of self-fulfilling crisis[electronic resource] /Gustavo AdlerWashington, D.C. International Monetary Fundc20121 online resource (30 p.)IMF working paper ;WP/12/178Description based upon print version of record.1-4755-5825-2 1-4755-0526-4 Includes bibliographical references.Cover; Contents; 1. Introduction; 2. Model; 2.1 Households; 2.2 Domestic Financial Intermediaries; 2.3 Firms; 2.4 Government; 2.5 A Competitive Equilibrium; 2.6 A Sustainable Debt Equilibrium; 2.7 A Self-Fulfilling Crisis; 3. Discussion; 3.1 Senior Debt Structure; 3.2 Capital Requirements; 3.3 Public Recapitalization; 4. Conclussions; Figures; 1. Equilibria at Time t; 2. Equilibria with Different Levels of Domestic Debt; 3. Probability of Crisis and Effect on Prices, Private Credit and Output; Appendix; ReferencesLarge fiscal financing needs, both in advanced and emerging market economies, have often been met by borrowing heavily from domestic banks. As public debt approached sustainability limits in a number of countries, however, high bank exposure to sovereign risk created a fragile inter-dependence between fiscal and bank solvency. This paper presents a simple model of twin (sovereign and banking) crisis that stresses how this interdependence creates conditions conducive to a self-fulfilling crisis.IMF Working PapersFinancial crisesBanks and bankingElectronic books.Financial crises.Banks and banking.Adler Gustavo1974-866245MiAaPQMiAaPQMiAaPQBOOK9910462257903321Intertwined sovereign and bank solvencies in a model of self-fulfilling crisis1933303UNINA