Search results for "debt"

The international debt problem: An analysis of the Brady plan

1989

Recently the American Treasury Secretary, Nicholas Brady, launched a new initiative in which he proposed reducing the developing countries’ bank debt. What are the elements of the plan, and which countries would benefit? What problems does it entail? Can it bring about a decisive improvement in the international debt situation of the developing countries? The following two articles attempt to answer these questions.

Risk Management for Sovereign Debt Financing with Sustainability Conditions

2019

We develop a model of debt sustainability analysis with optimal financing decisions in the presence of macroeconomic, financial and fiscal uncertainty. We define a coherent measure of refinancing risk, and trade off the risks of debt stock and flow dynamics, subject to debt sustainability constraints and endogenous risk and term premia. We optimize both static and dynamic financing strategies, compare them with several simple rules and consol financing to demonstrate economically significant effects of optimal financing, and show that the stock-flow tradeoff can be critical for sustainability. We quantify the minimum refinancing risk and the maximum rate of debt reduction that a sovereign c…

Financial Behaviour Under Economic Strain in Different Age Groups: Predictors and Change Across 20 Years

2021

AbstractThe present study examined the multiple micro- and macro-level factors that affect individuals’ financial behaviour under economic strain. The following sociodemographic and economic factors that predict financial behaviour were analysed: age group, year of data gathering, and attitudes towards consumption (economical, deprived, and hedonistic). Subjective financial situations and demographic characteristics were controlled for. Finnish time series data that consisted of five cross-sectional nationally representative surveys were used (n = 10 043). The analyses revealed four types of financial behaviour: cutting expenses, borrowing, increasing income, and gambling. Young adults aged…

A Stochastic Programming Model for the Optimal Issuance of Government Bonds

2010

Sovereign states issue fixed and floating securities to fund their public debt. The value of such portfolios strongly depends on the fluctuations of the term structure of interest rates. This is a typical example of planning under uncertainty, where decisions has to be drawn on the base of the key stochastic economic factors underneath the model.We propose a multistage stochastic programming model to select portfolios of bonds, where the aim of the decision maker is that of minimizing the cost of the decision process. At the same time, we bound the conditional Value-at-Risk, a measure of risk which accounts for the losses of the tail distribution. We build an efficient frontier to trade-off…

The Global Crisis and Alternative Scenarios to Save the Euro: A Spanish Perspective

2013

That the euro was in trouble became evident after the financial markets' turmoil the summer of 2007. The global financial crisis called into question some of the dogma propounded by the champions of liberal capitalism, such as the efficiency of financial markets. Whereas in the US several banks went bankrupt, in the EU the banking sector was recapitalised, and fiscal measures were taken to support companies and families, and to stimulate the economy; moreover, an institutional framework was set up to improve financial regulation and supervision. The banking and financial crisis was followed, as usual, by a debt crisis. In 2010–11, successive European Summits accelerated the creation of fina…

An Outline for Funding Adaptation and Disaster Management Schemes

2012

This paper develops further a proposal to split continued climate negotiations into two separate blocks. The first block deals with historical emissions of greenhouse gases, including a mutual debt cancellation: the accumulated carbon debts of developed countries up to a cut-off year would be swapped for conventional monetary debts of developing countries. The second block deals with future emissions and how to finance adaption to climate change. Following the “polluter pays” principle, the funds should be collected in proportion to the responsibility for climate change and redistributed in proportion to the needs for adaption and management of climate-related risks. A system based on separ…

Nuovi diritti umani e nuovi soggetti: i diritti delle generazioni future

The thesis deals with the subjects of rights of future generations through both philosophical and legal perspective. The Introduction considers the phenomenon of new subjects in legal theory and, more widely, the outbreak of new human rights related to the technological development. The First Chapter faces the problem of the definition of “future generations” and identifies three different approaches. The first one, the “Remotist” approach, defines “future generations” just as the future humankind extremely distant from the present time. The second, the “Proximist” approach, looks at “future generations” as a concept involving exclusively our direct descendants. The third one, the “Indeterm…

Do debt crises boost financial reforms?

2014

"Published online: 15 Aug. 2014"

Omission of Quality Software Development Practices : A Systematic Literature Review

2018

Software deficiencies are minimized by utilizing recommended software development and quality assurance practices. However, these recommended practices (i.e., quality practices) become ineffective if software professionals purposefully ignore them. Conducting a systematic literature review (n = 4,838), we discovered that only a small number of previous studies, within software engineering and information systems literature, have investigated the omission of quality practices. These studies explain the omission of quality practices mainly as a result of organizational decisions and trade-offs made under resource constraints or market pressure. However, our study indicates that different aspe…

Capital Regulation with Heterogeneous Banks

2013

We provide a general equilibrium analysis of potential consequences from the introduction of a binding leverage ratio, as proposed in Basel III. If banks differ in their monitoring skills and their ability to successfully complete a risky investment project, a tighter leverage ratio does not only mitigate moral hazard arising from limited liability, but also carries an unintended consequence: Banks are not allowed to absorb the entire supply of debt if they cannot raise new equity, which induces agents with a lower monitoring skill to open a bank. This decreases the average ability of operating banks. We further show that rising heterogeneity in the banking sector increases this negative ef…