Asonuma, Tamon; Bakhache, Said; Hesse, Heiko - International Monetary Fund (IMF) - 2015
Motivated by the recent increase in domestic banks’ holdings of domestic sovereign debt (i.e., home bias) in the … European periphery, this paper analyzes implications of banks’ home bias for the sovereign’s debt sustainability. The main … findings, based on a sample of advanced (AM) and emerging market (EM) economies, suggest that home bias generally reduces the …