Government Bonds in Domestic and Foreign Currency : The Role of Institutional and Macroeconomic Factors

In contrast to some recent research, this paper finds that institutional and macroeconomic factors are related to the depth and currency composition of government bond markets. Using panel data for developed and emerging economies, we find several factors to be systematically associated with bond ma...

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Main Authors:	Claessens, Stijn, Klingebiel, Daniela, Schmukler, Sergio L.
Format:	Journal Article
Language:	en_US
Published:	Wiley 2013
Subjects:	government debt government bond markets sovereign bonds foreign currency debt currency structure
Online Access:	http://hdl.handle.net/10986/16215

id	okr-10986-16215
recordtype	oai_dc
spelling	okr-10986-162152021-04-23T14:03:28Z Government Bonds in Domestic and Foreign Currency : The Role of Institutional and Macroeconomic Factors Claessens, Stijn Klingebiel, Daniela Schmukler, Sergio L. government debt government bond markets sovereign bonds foreign currency debt currency structure In contrast to some recent research, this paper finds that institutional and macroeconomic factors are related to the depth and currency composition of government bond markets. Using panel data for developed and emerging economies, we find several factors to be systematically associated with bond markets. Aside from economic size (already shown to affect the currency composition), this paper shows that investor bases matter. Economies with deeper domestic financial systems (measured by bank deposits and stock market capitalization) have larger domestic currency bond markets and issue less foreign currency debt, whereas foreign investor demand is positively related to the size and share of foreign currency bonds. Moreover, less flexible exchange rate regimes are associated with more foreign currency issuance. Other relevant variables include inflation, fiscal burden, legal origin, and capital account openness. 2013-11-04T22:09:22Z 2013-11-04T22:09:22Z 2007-04-26 Journal Article Review of International Economics 1467-9396 http://hdl.handle.net/10986/16215 en_US http://creativecommons.org/licenses/by-nc-nd/3.0/igo CC BY-NC-ND 3.0 IGO http://creativecommons.org/licenses/by-nc-nd/3.0/igo/ World Bank Wiley Journal Article
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	en_US
topic	government debt government bond markets sovereign bonds foreign currency debt currency structure
spellingShingle	government debt government bond markets sovereign bonds foreign currency debt currency structure Claessens, Stijn Klingebiel, Daniela Schmukler, Sergio L. Government Bonds in Domestic and Foreign Currency : The Role of Institutional and Macroeconomic Factors
relation	http://creativecommons.org/licenses/by-nc-nd/3.0/igo
description	In contrast to some recent research, this paper finds that institutional and macroeconomic factors are related to the depth and currency composition of government bond markets. Using panel data for developed and emerging economies, we find several factors to be systematically associated with bond markets. Aside from economic size (already shown to affect the currency composition), this paper shows that investor bases matter. Economies with deeper domestic financial systems (measured by bank deposits and stock market capitalization) have larger domestic currency bond markets and issue less foreign currency debt, whereas foreign investor demand is positively related to the size and share of foreign currency bonds. Moreover, less flexible exchange rate regimes are associated with more foreign currency issuance. Other relevant variables include inflation, fiscal burden, legal origin, and capital account openness.
format	Journal Article
author	Claessens, Stijn Klingebiel, Daniela Schmukler, Sergio L.
author_facet	Claessens, Stijn Klingebiel, Daniela Schmukler, Sergio L.
author_sort	Claessens, Stijn
title	Government Bonds in Domestic and Foreign Currency : The Role of Institutional and Macroeconomic Factors
title_short	Government Bonds in Domestic and Foreign Currency : The Role of Institutional and Macroeconomic Factors
title_full	Government Bonds in Domestic and Foreign Currency : The Role of Institutional and Macroeconomic Factors
title_fullStr	Government Bonds in Domestic and Foreign Currency : The Role of Institutional and Macroeconomic Factors
title_full_unstemmed	Government Bonds in Domestic and Foreign Currency : The Role of Institutional and Macroeconomic Factors
title_sort	government bonds in domestic and foreign currency : the role of institutional and macroeconomic factors
publisher	Wiley
publishDate	2013
url	http://hdl.handle.net/10986/16215
_version_	1764432530090491904

Government Bonds in Domestic and Foreign Currency : The Role of Institutional and Macroeconomic Factors

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