2024-03-29T00:12:11Zhttps://repositorio.bde.es/oai/requestoai:repositorio.bde.es:123456789/68912023-11-28T12:46:34Zcom_123456789_5661com_123456789_21col_123456789_5691
Using standstills to manage sovereign debt crises
Erce, Aitor
Sovereign debt
Liquidity runs
Standstills
Effort
Déficit y deuda públicos
Métodos matemáticos y cuantitativos
D82
F02
K41
This paper presents a model analyzing the potential for an International Court with powers to declare standstills to mitigate the coordination problem inherent to roll-overs in sovereign debt markets. It is shown that, regardless of the quality of the information handled by such an Institution, the scale of the coordination problem is reduced since its mere existence forces investors to focus on the Court's course of action rather than on other investors' beliefs. Furthermore, the model shows that, in order to avoid moral hazard, the right of recourse to the Court should be made conditional. [resumen de autor]
2007-01-03
Documento de trabajo
ISSN: 0213-2710 (en papel)
ISSN: 1579-8666 (en línea)
https://repositorio.bde.es/handle/123456789/6891
eng
Documentos de Trabajo / Banco de España, 0636
Reconocimiento-NoComercial-CompartirIgual 4.0 Internacional (CC BY-NC-SA 4.0)
In Copyright - Non Commercial Use Permitted
https://creativecommons.org/licenses/by-nc-sa/4.0/deed.es_ES
http://rightsstatements.org/vocab/InC-NC/1.0/
37 p. : fórmulas
application/pdf
Banco de España
Madrid : Banco de España, 2006