If country and currency risk premiums are positively correlated, a negative international liquidity shock harms twice … currency risk premiums observed in some countries is called cousin risks. We, first, identify the extent of this phenomenon by …

In this paper we study the question of debt sustainability from a risk management perspective. The debt accumulation … of risk, there are paths in which it is clearly unsustainable. Furthermore, we show that properties of the debt dynamics …

leading companies to disregard the exchange rate risk, biasing their borrowing towards foreign currency denominated debt , and … fluctuations in the exchange rate and risk management policies are of major importance to the real economy. The main results can be … foreign currency denominated debt to total debt is the main source of risk for Brazilian companies, and that foreign sales and …

We show that a model of the spirit of capitalism can generate a high degree of international risk sharing as measured … one needs in interpreting discount-factor-based measures of international risk sharing: in the presence of portfolio … externalities, even when the measured degree of risk sharing is perfect, it is still possible for government policies to induce …

€ instrument, enabling the government to implement its preferred policy, assured that lending will continue. To mitigate the risk …

composition of debt in Japan and Russia at the turn of the nineteenth century. …