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Terms of trade and fiscal sustainability when the sovereign exploits a natural resource

Andrian, Leandro; Oviedo, Marcelo - 2013

When it comes to assess the sustainability of fiscal policy and public debt in Andean countries, two idiosyncratic facts of fiscal revenues have to be considered. First, fiscal revenues coming from natural resources represent up to 44% of total fiscal revenues, producing a strong correlation...

Persistent link: https://www.econbiz.de/10011303815

Preferred and non-preferred creditors

Cordella, Tito; Powell, Andrew - 2021

International financial institutions (IFIs) generally enjoy preferred creditors treatment (PCT). Although PCT rarely appears in legal contracts, when sovereigns restructure bilateral or commercial debts, they normally pay IFIs in full. This paper presents a model where a creditor, such as an...

Persistent link: https://www.econbiz.de/10012586734

Eurozone : the untold economics

Hatgioannides, John; Karanassou, Marika; Sala, Hector - 2013

This paper dwells on the Eurozone woes and addresses the origins of the transition from a fictitious boom to a painful bust by unravelling (i) the supply-side structural imbalances that formed the core-periphery economic divide, and (ii) the necessity of the periphery's sovereign debt to finance...

Persistent link: https://www.econbiz.de/10009687800

Fiscal consolidation and its growth effects in euro area countries : past, present and future outlook

Heimberger, Philipp - 2024

for joining the monetary union (1992-1998); before and during the recession triggered by the global financial crisis (1999 …-2009); and the euro crisis (with a specific focus on the 2011-2013 period). The empirical evidence on the growth effects of … strong and persistent during the euro crisis. With regard to the austerity outlook, I show that, beginning in 2025, EA …

Persistent link: https://www.econbiz.de/10015076372

From debt collection to relief provision : 60 years of official debt restructurings through the Paris Club

Cheng, Gong; Díaz Cassou, Javier; Erce, Aitor - 2017

Despite the frequency of official debt restructurings, little systematic evidence has been produced on their characteristics and implications. Using a dataset covering more than 400 Paris Club agreements, this paper aims to fill that gap. It provides a comprehensive description of the evolving...

Persistent link: https://www.econbiz.de/10011581662

Emerging markets bond index performance and sovereign default : the case of Ecuador

Zanoni, Wladimir; Díaz, Emily; Paredes, Jorge; … - 2024

This paper delves into the dynamic impact of Ecuador's 2008 sovereign debt default on the subsequent performance of the country's bonds, specifically as measured by the Emerging Markets Bond Index (EMBI). Through a blend of qualitative and quantitative analyses, the paper develops a framework...

Persistent link: https://www.econbiz.de/10014529939

Sovereign risk and economic complexity

Gómez González, José Eduardo; Uribe, Jorge; … - 2024

This paper investigates how a country's economic complexity influences its sovereign yield spread with respect to the United States. Notably, a one-unit increase in the Economic Complexity Index is associated with a reduction of about 87 basis points in the 10-year yield spread. However, this...

Persistent link: https://www.econbiz.de/10014536288

Debt reduction in Latin America and the Caribbean

Panizza, Ugo; Powell, Andrew - 2023

During the pandemic, public debt in Latin America and the Caribbean rose to more than 70 percent of GDP, and countries are now attempting to lower debt ratios. We analyze past debt reduction episodes and find inflation and the real interest rate were the most frequent main drivers, while higher...

Persistent link: https://www.econbiz.de/10014540585

Growth-friendly fiscal rules? : safeguarding public investment from budget cuts through fiscal rule design

Ardanaz, Martín; Cavallo, Eduardo A.; Izquierdo, Alejandro - 2020

We show that some types of fiscal rules can mitigate the well-known procyclical bias in public capital expenditures. Past research has found that fiscal adjustment episodes coincide with large public investment cuts, a pattern we also document in a sample of 75 advanced and emerging economies...

Persistent link: https://www.econbiz.de/10012167402

Fiscal rules and economic cycles : quality (always) matters

Andrián, Leandro; Hirs-Garzón, Jorge; Urrea, Iván; … - 2023

Governments can issue public debt for both good and bad reasons. The former include intertemporal tax smoothing, fiscal stimulus, and asset management. In contrast, the bad reasons, which generate higher indebtedness, are mainly associated with political cycles, rent capture, intergenerational...

Persistent link: https://www.econbiz.de/10014480731