In fi nancial crises, private debts typically turn into public debt. In the case of private bank debt, a risk is that sovereign debt may balloon out of control because of actions taken to prevent the collapse of banking systems. This paper discusses some issues related to this interaction between bank debt and sovereign debt. Specifi cally, it recalls well-identifi ed stylised facts about the loop between banks and sovereigns. It suggests that, beyond positive reasons, some normative considerations explain the nature and intensity of this loop. From a policy perspective, it assesses the implications of some recent developments in regulation and public policies, points out what could be done to reduce the chances of a negative bank-sovereign...
The aim of this paper is to assess the consequences of banking crises on public debt. Using an unbal...
Several recent defaults on government debt were accompanied by major banking crises in the defaultin...
2019-04-28This paper explored two moral hazard phenomena which may lead to bank run and financial cr...
We analyse the poisonous interaction between bank rescues, financial fragility and sovereign debt di...
This paper investigates the interaction of market views on the sustainability of sovereign debt and ...
International audienceIn this paper, we analyze whether regulation reduced risk during the credit cr...
We present a model of the maturity of a banks uninsured debt. The bank borrows funds and chooses aft...
Intervention has taken different forms in different countries and periods of time. Moreover, recent ...
In this paper, we analyze whether regulation reduced risk during the credit crisis and the sovereign...
We study a model of sovereign debt crisis that combines problems of creditor co-ordination and debto...
Recent experience taught us that advanced economies can be subject to debt crises, with tremendous i...
We analyze the interaction between bank rescues, financial fragility and sovereign debt discounts. T...
We study a model of sovereign debt crisis that combines problems of creditor co-ordination and debto...
In European countries recently hit by a sovereign debt crisis, banks have sharply raised their holdi...
In December 2013 the European Commissioner Barnier, presenting the Single Resolution Mechanism for ...
The aim of this paper is to assess the consequences of banking crises on public debt. Using an unbal...
Several recent defaults on government debt were accompanied by major banking crises in the defaultin...
2019-04-28This paper explored two moral hazard phenomena which may lead to bank run and financial cr...
We analyse the poisonous interaction between bank rescues, financial fragility and sovereign debt di...
This paper investigates the interaction of market views on the sustainability of sovereign debt and ...
International audienceIn this paper, we analyze whether regulation reduced risk during the credit cr...
We present a model of the maturity of a banks uninsured debt. The bank borrows funds and chooses aft...
Intervention has taken different forms in different countries and periods of time. Moreover, recent ...
In this paper, we analyze whether regulation reduced risk during the credit crisis and the sovereign...
We study a model of sovereign debt crisis that combines problems of creditor co-ordination and debto...
Recent experience taught us that advanced economies can be subject to debt crises, with tremendous i...
We analyze the interaction between bank rescues, financial fragility and sovereign debt discounts. T...
We study a model of sovereign debt crisis that combines problems of creditor co-ordination and debto...
In European countries recently hit by a sovereign debt crisis, banks have sharply raised their holdi...
In December 2013 the European Commissioner Barnier, presenting the Single Resolution Mechanism for ...
The aim of this paper is to assess the consequences of banking crises on public debt. Using an unbal...
Several recent defaults on government debt were accompanied by major banking crises in the defaultin...
2019-04-28This paper explored two moral hazard phenomena which may lead to bank run and financial cr...