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IMF Fiscal Monitor: Managing Public Wealth, October 2018

October 16, 2018 Bilal 0

IMF Fiscal Monitor: Managing Public Wealth, October 2018 https://ift.tt/2pDJSHV Back to Top Managing Public Wealth Public sector balance sheets bring together the entirety of what the state owns and owes, offering a broader fiscal picture beyond debt and deficits. Once governments understand the size and nature of public assets, they can start managing them more effectively, raising considerable additional revenue. Also, public sector balance sheet analysis allows for better risk management and policymaking. The Fiscal Monitor provides governments the tools to analyze the resilience of public finances. By identifying risks within the balance sheet, governments can act to manage or mitigate […]

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Rising Government Debt and What to Do About It — by Pierre Yared

September 4, 2018 Bilal 0

Rising Government Debt and What to Do About It — by Pierre Yared https://ift.tt/2NILeLO Rising Government Debt and What to Do About It NBER Working Paper No. 24979 Issued in August 2018 NBER Program(s):Economic Fluctuations and Growth, Public Economics, Political Economy Over the past four decades, government debt as a fraction of GDP has been on an upward trajectory in advanced economies, approaching levels not reached since World War II. While normative macroeconomic theories can explain the increase in the level of debt in certain periods as a response to macroeconomic shocks, they cannot explain the broad-based long-run trend in […]

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Quantitative Sovereign Default Models and the European Debt Crisis — by Luigi Bocola, Gideon Bornstein, Alessandro Dovis

September 4, 2018 Bilal 0

Quantitative Sovereign Default Models and the European Debt Crisis — by Luigi Bocola, Gideon Bornstein, Alessandro Dovis https://ift.tt/2oAQBBV Quantitative Sovereign Default Models and the European Debt Crisis NBER Working Paper No. 24981 Issued in August 2018 NBER Program(s):Economic Fluctuations and Growth, International Finance and Macroeconomics, Monetary Economics A large literature has developed quantitative versions of the Eaton and Gersovitz (1981) model to analyze default episodes on external debt. In this paper, we study whether the same framework can be applied to the analysis of debt crises in which domestic public debt plays a prominent role. We consider a model where […]

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China’s ‘Silk Road’ project runs into debt jam

September 2, 2018 Bilal 0

China’s ‘Silk Road’ project runs into debt jam https://ift.tt/2MLvzia China’s President Xi Jinping says trade with Belt and Road countries has exceeded $5 trillion China’s massive and expanding “Belt and Road” trade infrastructure project is running into speed bumps as some countries begin to grumble about being buried under Chinese debt. First announced in 2013 by President Xi Jinping, the initiative also known as the “new Silk Road” envisions the construction of railways, roads and ports across the globe, with Beijing providing billions of dollars in loans to many countries. Five years on, Xi has found himself defending his treasured […]

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The Economic Consequences of the 1953 London Debt Agreement

September 2, 2018 Bilal 0

https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2832561   Abstract In 1953 the Western Allied powers implemented a radical debt-relief plan that would, in due course, eliminate half of West Germany’s external debt and create a series of favourable debt repayment conditions. The London Debt Agreement (LDA) correlated with West Germany experiencing the highest rate of economic growth recorded in Europe in the 1950s and 1960s. In this paper we examine the economic consequences of this historical episode. We use new data compiled from the monthly reports of the Deutsche Bundesbank from 1948 to the 1960s. These reports not only provide detailed statistics of the German finances, […]

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Household Leverage and the Recession

August 31, 2018 Bilal 0

We evaluate and partially challenge the ‘household leverage’ view of the Great Recession. In the data, employment and consumption declined more in states where household debt declined more. We study a model where liquidity constraints amplify the response of consumption and employment to changes in debt. Source: Household Leverage and the Recession