Sovereign Debt: Indexation and Maturity

Alfaro, Laura; Kanczuk, Fábio

doi:10.2139/ssrn.1820039

Cited by 7 publications

(6 citation statements)

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“…15 See for details on this trade-off between debt maturity risks and debt currency risks (Blommestein, 2005;and Alfaro and Kanczuk, 2006). Recently, however, some countries were also successful in securing longer maturities.…”

Section: Non-oecd Countriesmentioning

confidence: 99%

New Strategies for Emerging Domestic Sovereign Bond Markets in the Global Financial Landscape

Blommestein

Santisó

2007

Glob. Econ. J.

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The forces shaping the revolution in banking and capital markets have radically changed the financial landscape during the past three decades. A remarkable feature of this changing new landscape has been the astonishing rate of internationalisation of the financial system in the last two decades, with emerging markets becoming increasingly important participants.At times this participation has led to excessive reliance on foreign financing, making the participation of these countries in the global financial system more vulnerable to shifts in expectations and perceptions. The sovereign debt management strategy suffered from many structural weaknesses, failing to take into account international best practices in financing budget deficits and developing * This article is based on OECD Development Centre Paper no. 260, New Strategies for Emerging Domestic Sovereign Bond Markets (DEV/DOC (2007) Against this background, this article focuses on new and more sophisticated strategies to develop domestic bond markets, taking into account the risk profile, complexities and other constraints of emerging markets. The article's central thesis is that risk-based public debt management and liquid domestic bond markets are important mutually reinforcing strategies for emerging financial markets to attain (1) enhanced financial stability, and (2) a more successful participation in the global financial landscape. It will also be shown that this twin-strategies approach requires taking a macroeconomic policy perspective.

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Section: Non-oecd Countriesmentioning

confidence: 99%

New Strategies for Emerging Domestic Sovereign Bond Markets in the Global Financial Landscape

Blommestein

Santisó

2007

Glob. Econ. J.

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“…See for details on this trade-off between debt maturity risks and debt currency risks (Blommestein, 2005;and Alfaro and Kanczuk, 2006). Recently, however, some countries were also successful in securing longer maturities.…”

Section: The Key Challenge For Emerging Market Policy Makers: Unmentioning

confidence: 99%

New Strategies for Emerging Domestic Sovereign Bond Markets

Blommestein

Santisó

2007

OECD Development Centre Working Papers

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Comments on this paper would be welcome and should be sent to the OECD Development Centre, 2, rue André Pascal, 75775 PARIS CEDEX 16, France; or to dev.contact@oecd.org. Documents may be downloaded from: http://www.oecd.org/dev/wp or obtained via e-mail (dev.contact@oecd.org). THE O PI N I O NS EXPR ESSED AN D AR G U M EN TS EM PLO YED I N TH I S D O C U M EN T AR E TH E SO LE R ESPO N SI BI LI TY O F TH E AU TH O R S AN D D O N O T N EC ESSAR I LY R EFLEC T TH O SE O F TH E O ECD O R O F TH E G O VER N M EN TS O F I TS M EM BER C O U N TR I ES CENTRE DE DÉVELOPPEMENT DOCUMENTS DE TRAVAILCette série de documents de travail a pour but de diffuser rapidement auprès des spécialistes dans les domaines concernés les résultats des travaux de recherche du Centre de développement. Ces documents ne sont disponibles que dans leur langue originale, anglais ou français ; un résumé du document est rédigé dans l'autre langue.Tout commentaire relatif à ce document peut être adressé au Centre de développement de l'OCDE, 2, rue André Pascal, 75775 PARIS CEDEX 16, France; ou à dev.contact@oecd.org. Les documents peuvent être téléchargés à partir de: http://www.oecd.org/dev/wp ou obtenus via le mél (dev.contact@oecd.org).

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“…This paper is connected to different strands of the literature. There is a substantial literature on optimal public debt management dating back to Lucas and Stokey (1983) -see Alfaro and Kanczuk (2006) for a non-technical review. The choice between indexed and nominal debt is part of this optimization problem.…”

Section: Introductionmentioning

confidence: 99%

A comparison of nominal and indexed debt under fiscal constraints

Westerhout

Beetsma

2019

Journal of International Money and Finance

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This Discussion Paper is issued under the auspices of the Centre's research programme in INTERNATIONAL MACROECONOMICS AND FINANCE. Any opinions expressed here are those of the author(s) and not those of the Centre for Economic Policy Research. Research disseminated by CEPR may include views on policy, but the Centre itself takes no institutional policy positions. The Centre for Economic Policy Research was established in 1983 as an educational charity, to promote independent analysis and public discussion of open economies and the relations among them. It is pluralist and non-partisan, bringing economic research to bear on the analysis of medium-and long-run policy questions. These Discussion Papers often represent preliminary or incomplete work, circulated to encourage discussion and comment. Citation and use of such a paper should take account of its provisional character.

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Sovereign Debt: Indexation and Maturity

Cited by 7 publications

References 71 publications

New Strategies for Emerging Domestic Sovereign Bond Markets in the Global Financial Landscape

New Strategies for Emerging Domestic Sovereign Bond Markets in the Global Financial Landscape

New Strategies for Emerging Domestic Sovereign Bond Markets

A comparison of nominal and indexed debt under fiscal constraints

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