Default In Today'S Advanced Economies: Unnecessary, Undesirable, And Unlikely (ebook)

Default In Today'S Advanced Economies: Unnecessary, Undesirable, And Unlikely (ebook)

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This note summarizes the main arguments put forward by some market commentators who argue that default is inevitable, and presents a rebuttal for each argument in turn. Their main arguments focus on the size of the adjustment and continued market concerns reflected in government bond spreads. The essence of our reasoning is that the challenge stems mainly from the advanced economies' large primary deficits. Thus, by lowering the interest bill while triggering the need to move to primary balance or a small primary surplus, default would not significantly reduce the need for major fiscal adjustment. In contrast, the emerging economies that defaulted in recent decades did so primarily as a result of high debt servicing costs, often in the context of major external shocks. We conclude that default would be ineffective and undesirable in today's advanced economies.


Detalles del ebook
ISBN:
9781455270842
Editorial:
International Monetary Fund
Formato:
EPub con DRM
Idioma:
Inglés
Género:
Historia
Subgénero:
Historia Universal
Prelectura del libro:
Default In Today'S Advanced Economies: Unnecessary, Undesirable, And Unlikely (ebook)

Referencia:

1455270842 |

EAN:

9781455270842