Intertwined Sovereign and Bank Solvencies in a Model of Self-Fulfilling Crisis / / Gustavo Adler

• Autore: Adler Gustavo
• Pubblicazione: Washington, D.C. : , : International Monetary Fund, , 2012
• Descrizione fisica: 1 online resource (30 p.)
• Soggetto topico: Financial crises; Banks and banking; Banks and Banking; Financial Risk Management; Money and Monetary Policy; Public Finance; Industries: Financial Services; Financial Markets and the Macroeconomy; Money Supply; Credit; Money Multipliers; Comparative or Joint Analysis of Fiscal and Monetary Policy; Stabilization; Treasury Policy; Banks; Depository Institutions; Micro Finance Institutions; Mortgages; Financial Crises; Monetary Policy, Central Banking, and the Supply of Money and Credit: General; Pension Funds; Non-bank Financial Institutions; Financial Instruments; Institutional Investors; Debt; Debt Management; Sovereign Debt; Banking; Economic & financial crises & disasters; Monetary economics; Finance; Public finance & taxation; Nonbank financial institutions; Domestic debt; Money; Financial institutions; Public debt; Financial services industry; Debts, Public
• Soggetto geografico: Argentina
• Note generali: Description based upon print version of record.
• Nota di bibliografia: Includes bibliographical references.
• Nota di contenuto: 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; References
• Sommario/riassunto: Large 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.
• Titolo autorizzato: Intertwined Sovereign and Bank Solvencies in a Model of Self-Fulfilling Crisis
• ISBN: 1-4755-2939-2; 1-4755-4841-9
• Formato: Materiale a stampa
• Livello bibliografico: Monografia
• Lingua di pubblicazione: Inglese
• Record Nr.: 9910786484403321
• Lo trovi qui: Univ. Federico II
• Serie: IMF Working Papers; Working Paper ; ; No. 2012/178