05949oam 22015254 450 991078648440332120230801225401.01-4755-2939-21-4755-4841-9(CKB)2670000000278910(EBL)1606839(SSID)ssj0000941830(PQKBManifestationID)11967091(PQKBTitleCode)TC0000941830(PQKBWorkID)10964213(PQKB)10291529(MiAaPQ)EBC1606839(Au-PeEL)EBL1606839(CaPaEBR)ebr10627131(OCoLC)800131332(IMF)WPIEE2012178(IMF)WPIEA2012178(EXLCZ)99267000000027891020020129d2012 uf 0engurcn|||||||||txtccrIntertwined Sovereign and Bank Solvencies in a Model of Self-Fulfilling Crisis /Gustavo AdlerWashington, D.C. :International Monetary Fund,2012.1 online resource (30 p.)IMF Working PapersIMF 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 Papers; Working Paper ;No. 2012/178Financial crisesBanks and bankingBanks and BankingimfFinancial Risk ManagementimfMoney and Monetary PolicyimfPublic FinanceimfIndustries: Financial ServicesimfFinancial Markets and the MacroeconomyimfMoney SupplyimfCreditimfMoney MultipliersimfComparative or Joint Analysis of Fiscal and Monetary PolicyimfStabilizationimfTreasury PolicyimfBanksimfDepository InstitutionsimfMicro Finance InstitutionsimfMortgagesimfFinancial CrisesimfMonetary Policy, Central Banking, and the Supply of Money and Credit: GeneralimfPension FundsimfNon-bank Financial InstitutionsimfFinancial InstrumentsimfInstitutional InvestorsimfDebtimfDebt ManagementimfSovereign DebtimfBankingimfEconomic & financial crises & disastersimfMonetary economicsimfFinanceimfPublic finance & taxationimfFinancial crisesimfNonbank financial institutionsimfDomestic debtimfMoneyimfFinancial institutionsimfPublic debtimfBanks and bankingimfFinancial services industryimfDebts, PublicimfArgentinaimfFinancial crises.Banks and banking.Banks and BankingFinancial Risk ManagementMoney and Monetary PolicyPublic FinanceIndustries: Financial ServicesFinancial Markets and the MacroeconomyMoney SupplyCreditMoney MultipliersComparative or Joint Analysis of Fiscal and Monetary PolicyStabilizationTreasury PolicyBanksDepository InstitutionsMicro Finance InstitutionsMortgagesFinancial CrisesMonetary Policy, Central Banking, and the Supply of Money and Credit: GeneralPension FundsNon-bank Financial InstitutionsFinancial InstrumentsInstitutional InvestorsDebtDebt ManagementSovereign DebtBankingEconomic & financial crises & disastersMonetary economicsFinancePublic finance & taxationFinancial crisesNonbank financial institutionsDomestic debtMoneyFinancial institutionsPublic debtBanks and bankingFinancial services industryDebts, PublicAdler Gustavo1474661DcWaIMFBOOK9910786484403321Intertwined Sovereign and Bank Solvencies in a Model of Self-Fulfilling Crisis3858231UNINA