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

G2TT

来源类型	Working Paper
规范类型	报告
DOI	10.3386/w19676
来源ID	Working Paper 19676
	Sovereign Debt Markets in Turbulent Times: Creditor Discrimination and Crowding-Out Effects
	Fernando Broner; Aitor Erce; Alberto Martin; Jaume Ventura
发表日期	2013-11-27
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	International Economics ; International Finance ; International Macroeconomics ; Globalization and International Relations ; Financial Economics ; Financial Markets
URL	https://www.nber.org/papers/w19676
来源智库	National Bureau of Economic Research (United States)
引用统计
资源类型	智库出版物
条目标识符	http://119.78.100.153/handle/2XGU8XDN/577352
推荐引用方式 GB/T 7714	Fernando Broner,Aitor Erce,Alberto Martin,et al. Sovereign Debt Markets in Turbulent Times: Creditor Discrimination and Crowding-Out Effects. 2013.