Rational Liquidity Crises in the Sovereign Debt Market : In Search of a Theory /

This paper studies under what circumstances creditworthy sovereign borrowers may be denied liquidity by rational creditors. It is shown that, when the creditor side of the market consists of many small investors there may be multiple rational expectations equilibria. In one equilibrium, creditors�...

詳細記述

書誌詳細
第一著者: Detragiache, Enrica
フォーマット: 雑誌
言語:English
出版事項: Washington, D.C. : International Monetary Fund, 1996.
シリーズ:IMF Working Papers; Working Paper ; No. 1996/038
オンライン・アクセス:Full text available on IMF
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245 1 0 |a Rational Liquidity Crises in the Sovereign Debt Market :   |b In Search of a Theory /  |c Enrica Detragiache. 
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300 |a 1 online resource (32 pages) 
490 1 |a IMF Working Papers 
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500 |a <strong>On-Campus Access:</strong> No User ID or Password Required 
506 |a Electronic access restricted to authorized BRAC University faculty, staff and students 
520 3 |a This paper studies under what circumstances creditworthy sovereign borrowers may be denied liquidity by rational creditors. It is shown that, when the creditor side of the market consists of many small investors there may be multiple rational expectations equilibria. In one equilibrium, creditors' pessimistic expectations about the borrower's creditworthiness become self-fulfilling, and the borrower experiences a liquidity crisis. Multiple equilibria can be avoided by marketing the loan appropriately or by developing a reputation for following good policies. Liquidity problems can also arise because of the temporary disruption of international bond markets due to events unrelated to the borrower's circumstances. Policies responses are discussed. 
538 |a Mode of access: Internet 
830 0 |a IMF Working Papers; Working Paper ;  |v No. 1996/038 
856 4 0 |z Full text available on IMF  |u http://elibrary.imf.org/view/journals/001/1996/038/001.1996.issue-038-en.xml  |z IMF e-Library