06138oam 22016094 450 991097028540332120250426110832.09781475529395147552939297814755484191475548419(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)WPIEA2012178WPIEA2012178(EXLCZ)99267000000027891020020129d2012 uf 0engurcn|||||||||txtccrIntertwined Sovereign and Bank Solvencies in a Model of Self-Fulfilling Crisis /Gustavo Adler1st ed.Washington, 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.9781475558258 1475558252 9781475505269 1475505264 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 bankingBankingimfBanks and BankingimfBanks and bankingimfBanksimfComparative or Joint Analysis of Fiscal and Monetary PolicyimfCreditimfDebt ManagementimfDebtimfDebts, PublicimfDepository InstitutionsimfDomestic debtimfEconomic & financial crises & disastersimfFinanceimfFinancial CrisesimfFinancial crisesimfFinancial institutionsimfFinancial InstrumentsimfFinancial Markets and the MacroeconomyimfFinancial Risk ManagementimfFinancial services industryimfIndustries: Financial ServicesimfInstitutional InvestorsimfMicro Finance InstitutionsimfMonetary economicsimfMonetary Policy, Central Banking, and the Supply of Money and Credit: GeneralimfMoney and Monetary PolicyimfMoney MultipliersimfMoney SupplyimfMoneyimfMortgagesimfNon-bank Financial InstitutionsimfNonbank financial institutionsimfPension FundsimfPublic debtimfPublic finance & taxationimfPublic FinanceimfSovereign DebtimfStabilizationimfTreasury PolicyimfArgentinaimfFinancial crises.Banks and banking.BankingBanks and BankingBanks and bankingBanksComparative or Joint Analysis of Fiscal and Monetary PolicyCreditDebt ManagementDebtDebts, PublicDepository InstitutionsDomestic debtEconomic & financial crises & disastersFinanceFinancial CrisesFinancial crisesFinancial institutionsFinancial InstrumentsFinancial Markets and the MacroeconomyFinancial Risk ManagementFinancial services industryIndustries: Financial ServicesInstitutional InvestorsMicro Finance InstitutionsMonetary economicsMonetary Policy, Central Banking, and the Supply of Money and Credit: GeneralMoney and Monetary PolicyMoney MultipliersMoney SupplyMoneyMortgagesNon-bank Financial InstitutionsNonbank financial institutionsPension FundsPublic debtPublic finance & taxationPublic FinanceSovereign DebtStabilizationTreasury Policy332.1;332.152Adler Gustavo1614878DcWaIMFBOOK9910970285403321Intertwined Sovereign and Bank Solvencies in a Model of Self-Fulfilling Crisis4372349UNINA