Crises and Liquidity : Evidence and Interpretation /

In a large panel of countries, we find that less liquid countries are more likely to default on their external debt. Specifically, for given total external debt, the probability of a crisis increases with the proportion of short-term debt and debt service coming due and decreases with foreign exchan...

Ausführliche Beschreibung

Bibliographische Detailangaben
1. Verfasser: Detragiache, Enrica
Weitere Verfasser: Spilimbergo, Antonio
Format: Zeitschrift
Sprache:English
Veröffentlicht: Washington, D.C. : International Monetary Fund, 2001.
Schriftenreihe:IMF Working Papers; Working Paper ; No. 2001/002
Online Zugang:Full text available on IMF
Beschreibung
Zusammenfassung:In a large panel of countries, we find that less liquid countries are more likely to default on their external debt. Specifically, for given total external debt, the probability of a crisis increases with the proportion of short-term debt and debt service coming due and decreases with foreign exchange reserves. This correlation, however, is consistent with a standard model of optimal default and need not be ascribed to self-fulfilling creditor runs. Also, the correlation with short-term debt appears to be driven by joint endogeneity. The policy implications are discussed.
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Beschreibung:1 online resource (30 pages)
Format:Mode of access: Internet
ISSN:1018-5941
Zugangseinschränkungen:Electronic access restricted to authorized BRAC University faculty, staff and students