Quantitative Models of Sovereign Default and the Threat of Financial Exclusion
Author | : Juan Carlos Hatchondo |
Publisher | : |
Total Pages | : 35 |
Release | : 2008-01 |
ISBN-10 | : 1422319822 |
ISBN-13 | : 9781422319826 |
Rating | : 4/5 (826 Downloads) |
Download or read book Quantitative Models of Sovereign Default and the Threat of Financial Exclusion written by Juan Carlos Hatchondo and published by . This book was released on 2008-01 with total page 35 pages. Available in PDF, EPUB and Kindle. Book excerpt: Studies the role of the assumption that countries can be punished with financial exclusion after a sovereign default. It describes the business cycle properties of a sovereign default model with the exclusion punishment & compares them with those of the same model without the exclusion punishment. Both models build on the framework studied in Aguiar & Gopinath (2006). Finds that the presence of exclusion punishment is responsible for a high fraction of the sovereign debt that can be sustained in equilibrium. On the other hand, the cyclical behavior of consumption, output, interest rate, & net exports are not fundamentally different in the models with & without exclusion. Charts & tables.