GDP-Linked Bonds and Sovereign Default
| Autor: | Barr, David, Bush, Oliver, Pienkowski, Alex |
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| Rok vydání: | 2014 |
| Předmět: | |
| Zdroj: | SSRN Electronic Journal. |
| ISSN: | 1556-5068 |
| DOI: | 10.2139/ssrn.2388768 |
| Popis: | Using a calibrated model of endogenous sovereign default, we explore how GDP-linked bonds can raise the maximum sustainable debt level of a government, and substantially reduce the incidence of default. The model explores both the costs (in particular the GDP risk premium) and the benefits of issuing GDP-linked bonds. It concludes that significant welfare gains can be achieved by indexing debt to GDP. |
| Databáze: | OpenAIRE |
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