全球智库信息集成服务系统(G2TT): DP9761 Sovereign Debt Markets in Turbulent Times: Creditor Discrimination and Crowding-Out Effects

G2TT

来源类型	Discussion paper
规范类型	论文
来源ID	DP9761
	DP9761 Sovereign Debt Markets in Turbulent Times: Creditor Discrimination and Crowding-Out Effects
	Jaume Ventura; Fernando Broner; Alberto Martin; Aitor Erce
发表日期	2013-11-24
出版年	2013
语种	英语
摘要	In 2007, countries in the euro periphery were enjoying stable growth, low deficits, and low spreads. Then the Financial crisis erupted and pushed them into deep recessions, raising their deficits and debt levels. By 2010, they were facing severe debt problems. Spreads increased and, surprisingly, so did the share of the debt held by domestic creditors. Credit was reallocated from the private to the public sectors, reducing investment and deepening the recessions even further. To account for these facts, we propose a simple model of sovereign risk in which debt can be traded in secondary markets. The model has two key ingredients: creditor discrimination and crowding-out effects. Creditor discrimination arises because, in turbulent times, sovereign debt offers a higher expected return to domestic creditors than to foreign ones. This provides incentives for domestic purchases of debt. Crowding-out effects arise because private borrowing is limited by financial frictions. This implies that domestic debt purchases displace productive investment. The model shows that these purchases reduce growth and welfare, and may lead to self-fulfilling crises. It also shows how crowding-out effects can be transmitted to other countries in the euro zone, and how they may be addressed by policies at the European level.
主题	Financial Economics ; International Macroeconomics
关键词	Crowding out Discrimination Economic growth Rollover crises Sovereign debt
URL	https://cepr.org/publications/dp9761
来源智库	Centre for Economic Policy Research (United Kingdom)
资源类型	智库出版物
条目标识符	http://119.78.100.153/handle/2XGU8XDN/538597
推荐引用方式 GB/T 7714	Jaume Ventura,Fernando Broner,Alberto Martin,et al. DP9761 Sovereign Debt Markets in Turbulent Times: Creditor Discrimination and Crowding-Out Effects. 2013.