European Parliament Library

Sovereign Debt Defaults and Financing Needs, Miguel Messmacher, Mark Kruger

Contributor
Abstract
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
Table Of Contents
""Contents""; ""I. INTRODUCTION""; ""II. LITERATURE REVIEW: THEORETICAL AND EMPIRICAL RESULTS ""; ""III. AN INDICATOR OF NEW FINANCING NEEDS""; ""IV. ESTIMATION AND STATISTICAL RESULTS""; ""V. CONCLUSIONS AND POLICY IMPLICATIONS""; ""References""
Language
eng
Literary Form
non fiction
Note
Description based upon print version of record
Physical Description
1 online resource (33 p.)
Specific Material Designation
remote
Form Of Item
online
Isbn
9781281600707

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