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dc.titleThe Domestic Side of Sovereign Defaults
dc.contributor.authorErce, Aitor
dc.contributor.authorMallucci, Enrico
dc.contributor.authorPicarelli, Mattia
dc.contributor.orgunitConnectivity, Markets and Finance Division
dc.date.available2020-05-21T12:00:00
dc.date.issue2020-04-29T00:00:00
dc.description.abstractSovereign defaults are increasingly affecting liabilities governed by local law and held by local residents. This paper provides an overview of the existing literature on domestic defaults, describes a novel dataset that codifies defaults according to the jurisdiction of the instruments involved, and shows that domestic and foreign-law defaults have different macroeconomic implications. While a default affects economic growth regardless the legal jurisdiction, local-law defaults are more likely to trigger domestic financial instability and credit tightening, and foreign-law defaults are more likely to tighten access to external financing sources.
dc.format.extent26
dc.identifier.doihttp://dx.doi.org/10.18235/0002318
dc.identifier.urlhttps://publications.iadb.org/publications/english/document/The-Domestic-Side-of-Sovereign-Defaults.pdf
dc.language.isoen
dc.mediumAdobe PDF
dc.publisherInter-American Development Bank
dc.subjectCredit
dc.subjectDebt Restructuring
dc.subjectDomestic Debt
dc.subjectFinancial Bond
dc.subjectFinancial Stability
dc.subjectSovereign Default
dc.subject.jelcodeF34 - International Lending and Debt Problems
dc.subject.jelcodeE62 - Fiscal Policy
dc.subject.jelcodeF02 - International Economic Order and Integration
dc.subject.jelcodeG01 - Financial Crises
dc.subject.keywordsgrowth;Credit;domestic debt;sovereign default;governinglaw
dc.typeDiscussion Papers
idb.identifier.pubnumberIDB-DP-00755
idb.operationRG-T2860
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