Hidden Bibliographic Details
| Other authors / contributors: | Martínez, Leonardo, author.
IMF Institute.
International Monetary Fund, issuing body.
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| ISBN: | 9781616358426
1616358424
9781475543964
1475543964
9781475586176
1475586175
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| Notes: | "July 2013."
Includes bibliographical references (pages 15-16).
Online resource; title from PDF caption title (IMF, viewed September 4, 2013).
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| Summary: | "The authors study the sovereign debt duration chosen by the government in the context of a standard model of sovereign default. The government.
"The authors study the sovereign debt duration chosen by the government in the context of a standard model of sovereign default. The government balances off increasing the duration of its debt to mitigate rollover risk and lowering duration to mitigate the debt dilution problem. We present two main results. First, when the government decides the debt duration on a sequential basis, sudden stop risk increases the average duration by 1 year. Second, they illustrate the time inconsistency problem in the choice of sovereign debt duration: governments would like to commit to a duration that is 1.7 years shorter than the one they choose when decisions are made sequentially."--Summary.
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