External debt composition and domestic credit cycles

Avdjiev, Stefan; Binder, Stephan; Sousa, Ricardo M.

doi:10.1016/j.jimonfin.2021.102377

Cited by 10 publications

(4 citation statements)

References 78 publications

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“…This means that, during booms (crises), very little (too much) fiscal discipline is applied, which amplifies (worsens) booms (crises). That is, as argued by Mostak Ahamed (2017a, b, 2019), Castro and Martins (2019) and Avdjiev et al (2021), excessive risk-taking can disrupt financial stability and these, in turn, can spill to fiscal positions. Put it differently, fiscal destabilising effects engendered by financial markets may force governments towards excessive austerity, thus, deepening economic recessions (De Grauwe and Ji, 2013).2 7 F 24 These effects are more likely to take place in a monetary union, where governments issue debt in a currency that is not their own (De Grauwe and Ji, 2019), and our results suggest that they mainly operate via sovereign ratings, which tend to be pro-cyclical and exacerbate contagion (Michaelides et al, 2015).…”

Section: Discipline In the Context Of Financial Stressmentioning

confidence: 93%

A quest between fiscal and market discipline

2023

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Section: Discipline In the Context Of Financial Stressmentioning

confidence: 93%

A quest between fiscal and market discipline

2023

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“…Performance scores are distributed from 0 to 100. The highest score reflects the best situation (Avdjiev et al 2018).…”

Section: Domestic Credit To Private Sectormentioning

confidence: 99%

“…The succeeding null hypotheses below are tested against the alternative hypothesis for the long-term relationship: H0: γ1 to γ3 = 0 …… No cointegration H1: γ1 to γ3 ≠ 0 …… Cointegration (5) Additionally, to establish the short-term relationship against the alternative the following null hypotheses are set. From the below Table 2, the tabulated critical values are I(0) which denotes the lower bound and I(1) is the upper bound.…”

Section: Autoregressive Distributed Lag (Ardl) Bounds Testmentioning

confidence: 99%

The Impact of Stock Market Development on Economic Growth in Jordan

JARRAR

2021

JAES

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The strong development of stock markets is reflected in acceleration in the number of IPOs and a very sharp increase in transaction volumes (amounts of securities traded). To understand the effects of stock market development on Jordan’s economy, this research adopted the use of secondary time series info. Based on the descriptive statistics approach adopted, there are specific findings that define the overall objectives of the study. The findings show that the stock growth and private sector credit expansion optimistically contributes to the economic prosperity and development of the Jordanian economy. Moreover, the research findings also indicate that a foreign direct investment, which also influences the country’s stock, has an outcome on the country’s economic development in the long run. Further, the research findings also show that the economic development of Jordan is not affected by the domestic credit awarded to the private sector. However, the findings also show that trade involving stock has a minimal effect on the development and growth of the Jordanian economy. Overall, the research reveals that the FDI, the total stock value of trade, and the nationwide credit to the private sector have an influence on the economic growth of a country.

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“…External and domestic borrowing interact. Evidence suggests that external borrowing increases relative to the domestic during credit booms, Avdjiev, Binder, and Sousa, 2021;Borio, McCauley, and McGuire, 2011. Moreover, the strong credit expansion coupled with strong exchange rate appreciations typically precedes financial crises.…”

Section: Introductionmentioning

confidence: 99%

An Unconventional FX Tail Risk Story

Cañon,

Gerba,

Pambira

et al. 2023

SSRN Journal

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External debt composition and domestic credit cycles

Cited by 10 publications

References 78 publications

A quest between fiscal and market discipline

A quest between fiscal and market discipline

The Impact of Stock Market Development on Economic Growth in Jordan

An Unconventional FX Tail Risk Story

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