The Cost of Aggressive Sovereign Debt Policies : How Much is theprivate Sector Affected? /

This paper proposes a new empirical measure of cooperative versus conflictual crisis resolution following sovereign default and debt distress. The index of government coerciveness is presented as a proxy for excusable versus inexcusable default behaviour and used to evaluate the costs of default for...

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Bibliografiske detaljer
Hovedforfatter: Trebesch, Christoph
Format: Tidsskrift
Sprog:English
Udgivet: Washington, D.C. : International Monetary Fund, 2009.
Serier:IMF Working Papers; Working Paper ; No. 2009/029
Online adgang:Full text available on IMF
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100 1 |a Trebesch, Christoph. 
245 1 4 |a The Cost of Aggressive Sovereign Debt Policies :   |b How Much is theprivate Sector Affected? /  |c Christoph Trebesch. 
264 1 |a Washington, D.C. :  |b International Monetary Fund,  |c 2009. 
300 |a 1 online resource (37 pages) 
490 1 |a IMF Working Papers 
500 |a <strong>Off-Campus Access:</strong> No User ID or Password Required 
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 proposes a new empirical measure of cooperative versus conflictual crisis resolution following sovereign default and debt distress. The index of government coerciveness is presented as a proxy for excusable versus inexcusable default behaviour and used to evaluate the costs of default for the domestic private sector, in particular its access to international debt markets. Our findings indicate that unilateral, aggressive sovereign debt policies lead to a strong decline in corporate access to external finance (loans and bond issuance). We conclude that coercive government actions towards external creditors can have strong signalling effects with negative spillovers on domestic firms. "Good faith" debt renegotiations may be crucial to minimize the domestic costs of sovereign defaults. 
538 |a Mode of access: Internet 
830 0 |a IMF Working Papers; Working Paper ;  |v No. 2009/029 
856 4 0 |z Full text available on IMF  |u http://elibrary.imf.org/view/journals/001/2009/029/001.2009.issue-029-en.xml  |z IMF e-Library