The costs of sovereign default /
prepared by Eduardo Borensztein and Ugo Panizza.

Description

Main Author

Borensztein, Eduardo.

Related Names

Panizza, Ugo.
International Monetary Fund. Research Dept.

Language(s)

English

Published

Washington, D.C. : International Monetary Fund, Research Dept., 2008.

Subjects

Risque pays > Risque pays / Modèles économétriques.
Effets publics > Effets publics / Modèles économétriques.
Banques > Banques / Faillites > Banques / Faillites / Modèles économétriques.
Crises financières > Crises financières / Modèles économétriques.
Dettes publiques.
Dettes extérieures > Dettes extérieures / Modèles économétriques.
Défaillance (Finances) > Défaillance (Finances) / Modèles économétriques.
Country risk > Country risk / Econometric models.
Government securities > Government securities / Econometric models.
Bank failures > Bank failures / Econometric models.
Financial crises > Financial crises / Econometric models.
Debts, Public.
Debts, External > Debts, External / Econometric models.
Default (Finance) > Default (Finance) / Econometric models.

Summary

This paper evaluates empirically four types of cost that may result from an international sovereign default: reputational costs, international trade exclusion costs, costs to the domestic economy through the financial system, and political costs to the authorities. It finds that the economic costs are generally significant but short-lived, and sometimes do not operate through conventional channels. The political consequences of a debt crisis, by contrast, seem to be particularly dire for incumbent governments and finance ministers, broadly in line with what happens in currency crises.

Note

At head of title: Research Department.
"October 2008."
Also available via the World Wide Web.

Physical Description

50 p. : ill. ; 28 cm.

Locate a Print Version

Find in a library

Viewability