Sovereign Debt and the Financial Crisis

Carlos A. Primo Braga And Gallina A. Vincelette

Description

In the wake of the financial crisis of 2008, governments worldwide undertook massive fiscal interventions to stave off what otherwise would have likely been a system-wide financial and economic meltdown. The policy responses engendered significant shifts in growth trajectories and debt sustainability outlooks of both mature and developing economies.
The magnitude of public liabilities incurred and the uncertainty surrounding the exit from unprecedented discretionary fiscal stimulus have become a major source of concern about a future crisis. Will the current stringent financial conditions lead to a wave of sovereign debt problems around the world? Or will countries, given their stronger fundamentals compared with previous crises' episodes, successfully muddle through the crisis?
The book presents and discusses policy-relevant research on the current debt challenges which developing, emerging market, and developed economies face. Its value added lies in the integrated approach of drawing on theoretical research and evidence from practitioners' experience in developing, emerging market, and developed countries.

Sujets

• Sovereign default
• Financial crisis
• Debt

Informations

• Publié par: world-bank-publications
• Publié le: 16 novembre 2010
• Nombre de lectures: 31
• EAN13: 9780821385432
• Langue: English
• Poids de l'ouvrage: 9 Mo

Extrait

SOVEREIGN DEBT
AND THE FINANCIAL CRISIS
Will
This Time
Be Different?
Edited by
Carlos A. Primo Braga
Gallina A. VinceletteSovereign Debt and the
Financial CrisisSovereign Debt and
the Financial Crisis
Will This Time Be Different?
Edited by
Carlos A. Primo Braga
Gallina A. Vincelette© 2011 The International Bank for Reconstruction and Development / The World Bank
1818 H Street, NW
Washington, DC 20433
Telephone: [phone]
Internet: www.worldbank.org
All rights reserved
1 2 3 4 14 13 12 11
This volume is a product of the staff of the International Bank for Reconstruction and Devel-
opment / The World Bank. The findings, interpretations, and conclusions expressed in this
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ISBN: 978-0-8213-8483-1
eISBN: 978-0-8213-8543-2
DOI: 10.1596/978-0-8213-8483-1
Cover images
Image Source/Getty Images; Benson HE, 2010 Used under license from Shutterstock.com;
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Cover design
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Library of Congress Cataloging-in-Publication data has been applied for.In memory of our colleague Dana WeistContents
Foreword xvii
Acknowledgments xix
Contributors xxi
Abbreviations xxv
Introduction 1
Carlos A. Primo Braga and Gallina A. Vincelette
Part I: A New Wave of Sovereign Debt Crises? 13
1 The Sovereign Debt Crisis That Was Not 15
Daniel Cohen and Cécile Valadier
2 Unpleasant Surprises: Determinants and Risks
of Sovereign Default 45
Luca Bandiera, Jesús Crespo Cuaresma,
and Gallina A. Vincelette
3 Finding the Tipping Point: When Sovereign
Debt Turns Bad 63
Mehmet Caner, Thomas Grennes, and
Fritzi Koehler-Geib
4 Determinants of Emerging Market Sovereign
Bond Spreads 77
Dimitri Bellas, Michael G. Papaioannou,
and Iva Petrova
5 Sovereign Debt Distress and Corporate
Spillover Impacts 101
Mansoor Dailami
viiviii contents
Part II: The Effects of the Crisis on Debt 127
6 Debt Sustainability and Debt Distress in the
Wake of the Ongoing Financial Crisis:
The Case of IDA-Only African Countries 129
Leonardo Hernández and Boris Gamarra
7 Do Middle-Income Countries Still Have the
Ability to Deal with the Global
Financial Crisis? 173
Ralph Van Doorn, Vivek Suri, and
Sudarshan Gooptu
8 Small States, the Financial Crisis, and
the Aftermath 195
Edgardo Favaro, Dörte Dömeland,
William O’Boyle, and Tihomir Stuc ˇka
9 Europe’s Crisis: Origins and Policy
Challenges 221
Edgardo Favaro, Y ing Li, Juan Pradelli,
and Ralph Van Doorn
Part III: Debt Restructuring Mechanisms:
Lessons and Beyond 241
10 Avoiding Avoidable Debt Crises: Lessons from
Recent Defaults 243
Yuefen Li, Rodrigo Olivares-Caminal,
and Ugo Panizza
11 Managing Subnational Credit and
Default Risks 273
Lili Liu and Michael Waibel
12 Restructuring Sovereign Debts with Private
Sector Creditors: Theory and Practice 295
Mark L. J. Wright
13 A Standing Arbitral Tribunal as a Procedural
Solution for Sovereign Debt Restructurings 317
Christoph G. Paulus