Sovereign Debt Defaults and Financing Needs:

We construct a financial vulnerability indicator that is consistent with the theoretical literature on determinants of defaults. It is based on the amount of new foreign financing that is needed to avoid a default or an import adjustment, expressed as a proportion of the country''s sources...

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Bibliographische Detailangaben
1. Verfasser: Messmacher, Miguel (VerfasserIn)
Format: Elektronisch E-Book
Sprache:English
Veröffentlicht: Washington, D.C International Monetary Fund 2004
Schriftenreihe:IMF Working Papers Working Paper No. 04/53
Online-Zugang:UBW01
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Zusammenfassung:We construct a financial vulnerability indicator that is consistent with the theoretical literature on determinants of defaults. It is based on the amount of new foreign financing that is needed to avoid a default or an import adjustment, expressed as a proportion of the country''s sources of foreign currency. As the need for new foreign financing increases, so does a country''s financial vulnerability. The indicator has a higher correlation with default episodes than other indicators used in previous studies. In addition, the level at which it leads to a high probability of default is comparable across countries
Beschreibung:1 Online-Ressource (33 p)
ISBN:1451847416
9781451847413

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