scholarly journals The Baring Crisis and the Great Latin American Meltdown of the 1890s

2008 ◽  
Vol 68 (2) ◽  
pp. 462-500 ◽  
Author(s):  
KRIS JAMES MITCHENER ◽  
MARC D. WEIDENMIER
Keyword(s):  
Latin American ◽  
Sovereign Debt ◽  
Debt Crisis ◽  
Emerging Market ◽  
Institutional Factors ◽  
Sovereign Debt Crisis ◽  
Yield Spreads ◽  
Specific Effects ◽  
The World ◽  
Country Specific

The Baring Crisis is the nineteenth century's most famous sovereign debt crisis. Using a database of more than 15,000 observations, we assess its effect on emerging market borrowers and find empirical evidence of a regional crisis but not a global crisis. During the crisis, Latin American yield spreads increased by more than 200 basis points relative to the rest of the world, even after controlling for macroeconomic, trade, political-institutional factors, and other country-specific effects. Our evidence suggests that European investors may have sold off or reduced their holdings of Latin American securities in the wake of the Baring Crisis.

The Transmission of the Great Recession (2008-2009) and the Sovereign Debt Crisis (2010-2012) to Latin America

2018 ◽  
pp. 19-42
Author(s):  
Roberto J. Santillán-Salgado ◽  
Edgardo A. Ayala-Gaytán
Keyword(s):  
Growth Performance ◽  
Latin American ◽  
Sovereign Debt ◽  
Debt Crisis ◽  
Sovereign Debt Crisis ◽  
The Great Recession ◽  
International Financial Crises ◽  
International Financial Crisis ◽  
Hypothetical Scenario ◽  
Econometric Evidence

In this work we discuss econometric evidence on four major issues that relate to the six largest Latin American economies (Argentina, Brazil, Chile, Colombia, Mexico, and Peru) during the two consecutive international financial crises between 2008 and 2012. Our first concern has to do with the mechanism of transmission of the international financial crisis and its secondary effects on the real and financial sectors of our sample countries. The second aspect that we explore refers to the actual magnitude of both, real and financial effects of the crisis. Our third objective has to do with an evaluation of the role played by individual countries' external macroeconomic vulnerability. And, finally, we propose a contra-factual analysis of the growth performance of our sample of Latin American economies, with the growth performance they would have experienced in a hypothetical scenario of no external turmoil.

scholarly journals How Do Estimates of Inflation Persistence in Malta Compare with Other EU Countries?

2020 ◽  
Vol 12 (7) ◽  
pp. 31
Author(s):  
Brian Micallef ◽  
Reuben Ellul
Keyword(s):  
Euro Area ◽  
Sovereign Debt ◽  
Debt Crisis ◽  
Sovereign Debt Crisis ◽  
Inflation Persistence ◽  
Eu Countries ◽  
Gdp Growth Rate ◽  
European Sovereign Debt Crisis ◽  
Specific Factors ◽  
Country Specific

After the European sovereign debt crisis in 2012, inflation has been unexpectedly low across most of the economies making up the euro area, as well as the Monetary Union aggregate, with economists referring to this phenomenon as the “missing inflation” puzzle. As the smallest and one of the most open economies in the euro area, Malta has also registered a period of low inflation post-2012, despite registering an average GDP growth rate of 6.9% per annum over the period 2013-2019. This paper estimates the extent of inflation persistence of Malta and a number of EU economies for both the pre- and post-2012 period. Measures of persistence are computed as the sum of autoregressive coefficients derived from univariate regressions on both aggregated and disaggregated inflation series. Estimates of persistence in Malta have increased when the sample covers the post-2012 period. In terms of the main sub-components, energy inflation has a substantially higher persistence compared to the pre-2012 period, reflecting both external and country-specific factors. Most other EU countries also reported an increase in persistence when including the post-2012 period in the sample although the estimates for Malta, both at the aggregate and disaggregated indices, remain less persistent.

scholarly journals Volatility of yields of government bonds among GIIPS countries during the sovereign debt crisis in the euro area

Equilibrium ◽  
2016 ◽  
Vol 11 (1) ◽  
pp. 61 ◽  
Author(s):  
Tomas Heryan ◽  
Jan Ziegelbauer
Keyword(s):  
Euro Area ◽  
Sovereign Debt ◽  
Global Financial Crisis ◽  
Debt Crisis ◽  
Sovereign Debt Crisis ◽  
Bond Yields ◽  
Government Bonds ◽  
Yield Spreads ◽  
Crisis Period ◽  
The Global Financial Crisis

The aim of the paper is to estimate, how the volatility of yields of the Greek bonds affects yields’ volatilities of bonds in selected European countries during the period of the sovereign debt crisis in the euro area. We obtained data for 10-year bonds in a weekly frequency from January 2006 till the end of December 2014. To make a comparison of pre-crisis period, we firstly investigate a bond yields’ volatility before 15th September 2008, when U.S. Leman Brothers bankrupted and the global financial crisis had been reflected in full. However, the period of the global financial crisis could also negatively affect the development of government bonds. Therefore, the period after Leman Brothers’ bankruptcy has been excluded and our crisis period starts after 23rd April 2010, when Greece asked the IMF for financial help and the sovereign debt crisis had been reflected in full. Volatility models GARCH (1,1), IGARCH (1,1) and TARCH (1,1) were used as an estimation method. To examine the risk premium of all GIIPS economies (Greece, Ireland, Italy, Portugal and Spain), we also compared the whole investigation with the developments of each spread against the yields of German government bonds. Our results clearly proved not only big differences between pre-crisis and crisis period, but also differences in output with the bond yield spreads. It was concluded that  there has been a higher impact of the Greek bond yields, as well as yield spreads volatility in 2010 and 2011, while it is on the lower level in pre-crisis period.

World Overview

2011 ◽  
Vol 218 ◽  
pp. F13-F21
Author(s):  
Dawn Holland ◽  
Aurélie Delannoy ◽  
Tatiana Fic ◽  
Ian Hurst ◽  
Iana Liadze ◽  
...  
Keyword(s):  
Sovereign Debt ◽  
European Central Bank ◽  
World Economy ◽  
Debt Crisis ◽  
Sovereign Debt Crisis ◽  
European Central ◽  
Widespread Agreement ◽  
The World ◽  
Heads Of State ◽  
Bail Out

Global economic prospects have deteriorated markedly in recent months. Risks around our central forecast have shifted distinctly to the downside. Much of this is due to the heightened uncertainty surrounding Europe's sovereign debt crisis. There is widespread agreement among policymakers - ranging from the IMF, European Commission and European Central Bank to individual heads of state both within and outside the Euro Area - that resolution to the crisis requires urgent, comprehensive and coordinated action. Yet 17 months after the first bail-out programme was introduced in Greece, policymakers have failed to deliver a strategy that promises a credible prospect of growth and an end to rising debt profiles. Solvency concerns in three relatively small peripheral countries (Greece, Ireland and Portugal), combined with weakening growth across the continent, raise the dangerous spectre of illiquidity beginning to affect solvency in the larger core economies with high debt ratios - notably Italy. Left unchecked, the consequences would be severe for the world economy.

The Euro zone and the Sovereign Debt Crisis

2017 ◽  
pp. 1-28
Author(s):  
George (Yiorgos) Allayannis ◽  
Adam Risell
Keyword(s):  
Sovereign Debt ◽  
Debt Crisis ◽  
Hedge Fund ◽  
Online Research ◽  
Sovereign Debt Crisis ◽  
Viable Solution ◽  
The World ◽  
World Economic ◽  
To Come ◽  
Hedge Fund Manager

In January 2011, during the World Economic Forum's annual meeting in Davos, Switzerland, Jason Sterling, a hedge fund manager, was conducting online research to see if he could trade on any newsworthy information emerging from the summit. Sterling's fund traded primarily in sovereign debt, and he needed to figure out if European leaders would be able to come up with a viable solution to the crisis or whether the debt crisis would lead to the default of several European nations. He knew that if a solution was not found in the coming weeks, the sovereign debt markets could be thrown into turmoil.

scholarly journals THE HISTORICAL SETTING AND ORIGINAL TRAITS OF THE WORLD CRISIS

2014 ◽  
Vol 18 ◽  
pp. 23
Author(s):  
François Chesnais
Keyword(s):  
Great Recession ◽  
Sovereign Debt ◽  
Debt Crisis ◽  
Mortgage Market ◽  
Sovereign Debt Crisis ◽  
Subprime Mortgage ◽  
World Crisis ◽  
The World ◽  
Underlying Causes ◽  
Rate Of Profit

Os mais dramáticos e mais divulgados episódios da crise mundial tem sido financeiros: o colapso do mercado de crédito de hipotecas em 2007, a falha dos irmãos Lehmann em setembro de 2008 e mais recentemente o comércio bancário da Euro zona e a soberana crise de débito. Esses é claro ocorreram cada um em seu tempo e tiveram seu próprio impacto na produção, comércio e emprego. Mas isso não faz da crise uma “crise da financeirização” ou do “neoliberalismo”, mas do capitalismo tout court em certo momento de sua história. Suas causas subjacentes são superprodução e superacumulação a nível mundial e um jogo eficaz da tendência da taxa de lucro para cair apesar do recurso por capital dos fatores de compensação. A duração da crise, que é agora chamada não de ‘Grande Recessão’ Americana mas sim de crise global (McNally,2011), e o fim da fase onde a China e o Brasil pareciam estar dissociadas da crise mundial são expressões disto.Palavras-chave: Crise mundial, burguesia, Capital.THE HISTORICAL SETTING AND ORIGINAL TRAITS OF THE WORLD CRISISAbstract: The most dramatic and most publicized episodes of the world crisis have been financial: the subprime mortgage market collapse in 2007, the failure of Lehmann Brothers in September 2008 and more recently the Eurozone banking and sovereign debt crisis. They have of course each time had their own impact on production, trade and employment. But this does not make the crisis a “crisis of financialisation” or of “neoliberalism”, but of capitalism tout court at a given momentof its history. Its underlying causes are overproduction and over-accumulation at world level and an effective play of thetendency of the rate of profit to fall despite the recourse by capital to the offsetting factors. The length of the crisis, which is now named not a US ‘Great Recession” but a global slump (McNally, 2011), and the end of the phase where China and Brazil appeared to be decoupled from the world crisis are expressions of this.Key words: World crisis, bourgeoisie, Capital.

European Economies Stability Faced With Potential Outburst of Sovereign Debt Crisis. An Empirical Study Using Neural Network

2013 ◽  
Vol 12 (2) ◽  
pp. 3255-3260
Author(s):  
Stelian Stancu ◽  
Alexandra Maria Constantin
Keyword(s):  
Neural Network ◽  
Sovereign Debt ◽  
Debt Crisis ◽  
Banking System ◽  
Sovereign Debt Crisis ◽  
European Level ◽  
Continuous Growth ◽  
Economic Context ◽  
European Economies ◽  
The Impact

Instilment, on a European level, of a state incompatible with the state of stability on a macroeconomic level and in the financial-banking system lead to continuous growth of vulnerability of European economies, situated at the verge of an outburst of sovereign debt crises. In this context, the current papers main objective is to produce a study regarding the vulnerability of European economies faced with potential outburst of sovereign debt crisis, which implies quantitative analysis of the impact of sovereign debt on the sensitivity of the European Unions economies. The paper also entails the following specific objectives: completing an introduction in the current European economic context, conceptualization of the notion of “sovereign debt crisis, presenting the methodology and obtained empirical results, as well as exposition of the conclusions.

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