Russian Debt Crisis: Fear Not Your Debt, But Fundamentals
In: DEBT, DEFAULT AND IRELAND: ESSAYS ON THE IRISH CRISIS, Brian M. Lucey, Constantin Gurdgiev, Charles Larkin, eds., Blackwell Publishers, April 2012
In: DEBT, DEFAULT AND IRELAND: ESSAYS ON THE IRISH CRISIS, Brian M. Lucey, Constantin Gurdgiev, Charles Larkin, eds., Blackwell Publishers, April 2012
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In: D+C development and cooperation, S. 8-9
World Affairs Online
The paper investigates how the global financial and the ensuing European sovereign crisis affected the public debt dynamics of the EU member countries of Central and Eastern Europe, which countries are generally facing difficulties in keeping fiscal discipline as a negative consequence of global and regional financial turbulences. It reveals how economic factors (real GDP growth, interest rates, primary deficit) affected the trend of public debt in the period after 2008 among new EU members on the basis of Eurostat and European Economy statistics. After the briefing of some relevant government debt theories (among others Marcet and Scott, 2003, Díaz-Giménez and Giovanetti, 2007, Garcia et al., 2011, Broner et al., 2014), the paper provides a descriptive analysis of the debt structure of eight Central and Eastern European countries in recent years. It compares the currency composition of the governments' liabilities, discusses the role the domestic public sector plays in financing public debt, and whether there is evidence of domestic financing crowding out private investment in these countries. In the light of CDS premia and reference yields financing costs are contrasted and the way debt management strategies are formulated and government debt instruments are chosen in order to mitigate the financial burden caused by government indebtedness are compared. Finally, the paper summarises the lessons of the Hungarian self-financing programme launched in April 2014 by the Magyar Nemzeti Bank (Central Bank of Hungary).
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In: Policy analyses in international economics 95
Cover -- Contents -- Preface -- Acknowledgments -- Executive Summary -- Ch 1. A Decade of Debt -- I. Introduction -- II. Surges in Public Debt -- III. The Financial Crash-Sovereign Debt Crisis Sequence -- IV. Debt and Growth -- V. The Aftermath of High Debt: The 1930s and World War II -- VI. Conclusion -- Ch 2. Chartbook of Country Histories of Debt, Default, and Financial Crises -- I. Preamble -- II. Key to Figures and Methodology Notes -- III. Debt and Crises: Main Themes -- References -- About the Authors -- Index.
In: Economics as social theory 42
Language -- "Debt" as equivocal -- Debitum -- Debt and sin -- Debt vs. duty, I -- Debt vs. duty, II -- Owing and owning -- Creditum, I -- Creditum, II -- : history -- What is the institution of debt? -- Ancient usury -- Productive and extractive usury -- The defence of usury -- Forced debts -- The taming of debt -- Usury and abusury -- : money -- What is money? -- The trick behind money -- The origins of money -- Debunking the myth of barter -- Money as debt -- Chartalism and Fiat money -- Government ious and taxes -- Bank deposits and "inside money" -- Monetary operations and the dominance of bank IOUs -- Fixed and floating exchange rates section four : political economy -- The monetary theory of production -- Debt, trust, and production -- Debt deflation and accidental abusury -- Government deficits -- Inflation, I -- Inflation, II -- What any housewife knows -- Lazy thinking and a new proposal -- Notes and replies to objections -- A note on the "labour market" and immigration -- A note on the foreign trade balance -- A note on marxism and the falling rate of profit -- Conclusion
In: IEA conference volume No. 152
PART I: ANALYTICAL ISSUES 1.1. Crises: Principles and Policies-- Joseph Stiglitz 1.2. Comments-- Martin Guzman PART II: DEBT CRISES: VARIETIES OF EXPERIENCES 2.1. The Latin American Debt Crisis in Historical Perspective-- Jose Antonio Ocampo 2.2. Comments-- Pablo Sanguinetti 2.3. What have the Crises in Emerging Markets and the Eurozone in Common and What Differentiates Them?-- Roberto Frenkel 2.4. Comments-- Ricardo Beczuk 2.5. From Austerity to Growth in Europe: some Lessons from Latin America-- Stephany Griffith-Jones 2.6. Comments-- Hernan Seoane PART III: DEBT DEFAULTS: COSTS AND RESTRUCTURING GAMES 3.1. Strategic Behavior in Sovereign Debt Restructuring: Impact and Policy Responses-- Rohan Pitchford and Mark L. J. Wright 3.2. Comments-- Federico Weinschelbaum 3.3. Sovereign Debt Restructuring: The Road Ahead-- Benu Schneider 3.4. Comments-- Fernando Navajas PART IV: DEALING WITH CRISES: INSTRUMENTS AND POLICIES 4.1. Saving the Euro: Self-fulfilling Crisis and the 'Draghi Put'-- Marcus Miller 4.2. Comments-- Alfredo Schclarek Curutchet 4.3. GDP-Linked Bonds and Sovereign Default-- David Barr, Oliver Bush and Alex Pienkowski 4.4. Comments-- Enrique Kawamura 4.5. Multiple Choices: Economic Policies in Crisis-- Daniel Heymann and Axel Leijonhufvud 4.6. Comments-- Jorge Carrera
World Affairs Online
The tremendous amount of foreign debts that the Philippines have incurred has a debilitating impact on the lives of the whole people. This paper explains the background and different implications of this problem by a fictitious interview. (DÜI-Sbt)
World Affairs Online
In: The journal of development studies: JDS, Band 28, S. 473-499
ISSN: 0022-0388
Negative effects of the scheme on direct foreign investment and the balance of payments.
In June 2019, the Constitutional Council of Mozambique delivered a judgment declaring a financial transaction arranged by the government in violation of the parliamentary prerogatives in budgetary matters unconstitutional. This was only the tip of an iceberg consisting of a series of transactions tainted with corruption. In the face of this illegality, many antidebt campaigners have invoked the application of the odious debt doctrine to block the enforcement of contractual claims and the availability of restitutionary remedies. Under the odious debt doctrine, a debt is odious if, in the awareness of the creditors, it is contracted without the consent of and not for the benefit of the population. The operation of the odious debt doctrine presupposes an inquiry into its legal status. Lacking a proper normative characterization, the doctrine is to be understood more as a matter of policy than as a matter of law. As a result, its ideal systematic placement would be under the umbrella of transnational public policy. Transnational public policy establishes universal principles to serve the common interests of mankind. The key point, then, is to ascertain whether and to what extent the values enshrined into the odious debt doctrine may belong to the realm of the transnational public policy. In this context, the controversy on the validity of the Mozambican debt can become the touchstone for testing the legal status and operation of the odious debt doctrine.
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In: SAIS review / School of Advanced International Studies, the Johns Hopkins Foreign Policy Institute, Band 9, S. 129-149
ISSN: 0036-0775
Programs, similar to debt-equity swaps, designed to conserve tropical rain forests in Central and South America. Experiences in Bolivia, Costa Rica, and Ecuador since 1987.
We examine the implications for optimal inflation of changes in the level and maturity of government debt under the assumption where fiscal and monetary policies co-ordinate, and in the case of an independent central bank following a Taylor rule. Under co-ordination, inflation persistence and volatility depend on the sign, size and maturity of debt. Higher debt leads to higher inflation and longer maturity leads to more persistent inflation although inflation plays a minor role in achieving fiscal sustainability. Under an independent monetary authority, inflation is higher, more volatile and more persistent and plays a significant role in achieving fiscal solvency. The Economic Journal © 2013 Royal Economic Society. ; Marcet is grateful for support from DGES, Monfispol and Excellence Program if Banco de Espana. Faraglia and Scott gratefully acknowledge funding from the ESRC's World Economy and Finance Program. Oikonomou is grateful to HEC Montreal for funding ; Peer Reviewed
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FROM THE EDITOR'S INTRODUCTION: In Debt as Power, Di Muzio and Robbins present a historical account of the modern origins of capitalist debt by looking at how commercial money is produced as debt in the late seventeenth and early eighteenth centuries. They expertly demonstrate their key contention -- that debt is a technology of power -- and identify the ways in which the control, production, and distribution of money, as interest-bearing debt, are used to discipline populations. Their sharp analysis brings together histories of the development of the Bank of England and the establishment of permanent national debt with the intensification and expansion of debt, as a "technology of power", under colonialism in a global context. The latter part of the book addresses the consequences of modern regimes of debt and puts forward proposals of what needs to be done, politically, to reverse the problems generated by debt-based economies. The final chapter presents a convincing case for the 99% to use the power of debt to challenge present inequalities and outlines a platform for action suggesting possible alternatives.
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In: The journal of development studies: JDS, Band 28, Heft 3, S. 473-499
ISSN: 0022-0388
Chile is nowadays considered to have the most successful programme of debt conversion among debtor countries. However, the Chilean debt conversion programme presents some shortcomings. In fact, as this study shows, the conversion scheme may have negative effects regarding direct foreign investment and the balance of payments
World Affairs Online
"Debt as power is a timely and innovative contribution to our understanding of one of the most prescient issues of our time: the explosion of debt across the global economy and related requirement of political leaders to pursue exponential growth to meet the demands of creditors and investors. The book is distinctive in offering a historically sensitive and comprehensive analysis of debt as an interconnected and global phenomenon. Rather than focusing on the historical emergence of debt as a moral obligation, the authors argue that debt under capitalism can be conceived of as a technology of power, intimately tied up with the requirement for perpetual growth and the differential capitalization that benefits 'the 1%'.
Their account begins with the recognition that the histories of human communities and their natural environment are interconnected in complex spatial and hierarchical relations of power and to understand their development we need to not only examine the particularities of a given case, but more importantly their interconnected, interdependent and international relations. Since debt under capitalism is increasingly ubiquitous at all levels of society and economic growth is now the sole mantra of dominant political parties around the world, the authors argue that tracing the evolution and transformation of debt as a technology of power is crucial for understanding the 'present as history' and possible alternatives to our current trajectory."