Intertwined sovereign and bank solvencies in a model of self-fulfilling crisis:
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Bibliographic Details
Main Author: Adler, Gustavo 1974- (Author)
Format: Electronic eBook
Language:English
Published: [Washington, D.C.] International Monetary Fund ©2012
Series:IMF working paper WP/12/178
Subjects:
Online Access:FAW01
FAW02
FLA01
Item Description:Title from PDF title page (IMF Web site, viewed Jul. 17, 2012). - "Western Hemisphere Department.". - "July 2012."
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
Includes bibliographical references
Physical Description:29 pages
ISBN:1475558252
9781475558258

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