04428oam 22010814 450 991078841550332120230828232647.01-4623-9521-X1-4527-7234-71-283-51189-497866138243491-4519-0874-1(CKB)3360000000443428(EBL)3014404(SSID)ssj0000941804(PQKBManifestationID)11577308(PQKBTitleCode)TC0000941804(PQKBWorkID)10964436(PQKB)10845623(OCoLC)698585684(MiAaPQ)EBC3014404(IMF)WPIEE2006079(EXLCZ)99336000000044342820020129d2006 uf 0engur|n|---|||||txtccrInternational Financial Integration, Sovereignty, and Constraints on Macroeconomic Policies /Kenneth KletzerWashington, D.C. :International Monetary Fund,2006.1 online resource (26 p.)IMF Working Papers"March 2006."1-4518-6339-X Includes bibliographical references.""Contents""This paper considers the consequences of international financial market integration for national fiscal and monetary policies that derive from the absence of an international sovereign authority to define and enforce contractual obligations across borders. The sovereign immunity of national governments serves as a fundamental constraint on international finance and is used to derive intertemporal budget constraints for sovereign nations and their governments. It is shown that the appropriate debt limit for a country allows for state-contingent repayment. With noncontingent debt instruments, debt renegotiation occurs in equilibrium with positive probability. A model of tax smoothing is adopted to show how information imperfections lead to conventional bond contracts that are renegotiated when a critical level of indebtedness is reached. Renegotiation is interpreted in terms of nominal and real denominated bonds, and implications are drawn about the intertemporal borrowing constraint for monetary policies, the accumulation of reserve assets, and current account sustainability.IMF Working Papers; Working Paper ;No. 2006/079International financeSovereigntyFinancial Risk ManagementimfInflationimfInvestments: BondsimfPublic FinanceimfDebtimfDebt ManagementimfSovereign DebtimfGeneral Financial Markets: General (includes Measurement and Data)imfPrice LevelimfDeflationimfNational Government Expenditures and Related Policies: GeneralimfPublic finance & taxationimfFinanceimfInvestment & securitiesimfMacroeconomicsimfPublic debtimfDebt limitsimfBondsimfExpenditureimfDebts, PublicimfPricesimfExpenditures, PublicimfInternational finance.Sovereignty.Financial Risk ManagementInflationInvestments: BondsPublic FinanceDebtDebt ManagementSovereign DebtGeneral Financial Markets: General (includes Measurement and Data)Price LevelDeflationNational Government Expenditures and Related Policies: GeneralPublic finance & taxationFinanceInvestment & securitiesMacroeconomicsPublic debtDebt limitsBondsExpenditureDebts, PublicPricesExpenditures, PublicKletzer Kenneth119641DcWaIMFBOOK9910788415503321International Financial Integration, Sovereignty, and Constraints on Macroeconomic Policies3802291UNINA