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

The development of government bond markets and, in particular, their currency composition have recently received much interest, partly because of their relation with financial crises. The authors study the determinants of the size and currency comp...

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Main Authors:	Claessens, Stijn, Klingebiel, Daniela, Schmukler, Sergio L.
Format:	Policy Research Working Paper
Language:	English en_US
Published:	World Bank, Washington, DC 2014
Subjects:	GOVERNMENT BONDS CURRENCY PARITY FINANCIAL CRISES MARKET DOWNTURNS DOMESTIC INVESTMENT EXCHANGE RATE STABILITY CURRENCY CONVERTIBILITY FOREIGN CURRENCY INSTITUTIONAL FRAMEWORK MACROECONOMIC CORRELATIONS ACCOUNTING ADB AVERAGE INFLATION BANK FOR INTERNATIONAL SETTLEMENTS BANK OF ENGLAND BANKING SYSTEM BANKING SYSTEMS BENCHMARKING BOND MARKETS BORROWING CAPITAL CONTROLS CAPITAL MARKETS CENTRAL GOVERNMENTS COMMERCIAL BANKS CORPORATE GOVERNANCE DEBT DEBT MANAGEMENT DEBT RATIOS DECISION MAKING DEMOCRATIC INSTITUTIONS DEPOSITS DEVELOPED COUNTRIES DEVELOPING COUNTRIES DOMESTIC ECONOMY ECONOMIC GROWTH ECONOMIC REVIEW ECONOMIES OF SCALE EMERGING ECONOMIES EMERGING MARKET ECONOMIES EMERGING MARKETS EXCHANGE RATE EXCHANGE RATE ARRANGEMENTS EXCHANGE RATE REGIME EXCHANGE RATE REGIMES EXCHANGE RATE RISK EXCHANGE RATES EXPENDITURES EXTERNAL DEBT EXTERNALITIES FINANCIAL CRISIS FINANCIAL FRAGILITY FINANCIAL INTERMEDIATION FINANCIAL MARKETS FINANCIAL STRUCTURE FINANCIAL SYSTEM FISCAL DEFICITS FISCAL POLICIES FIXED COSTS FOREIGN CURRENCY DEBT FOREIGN EXCHANGE FOREIGN EXCHANGE RESERVES FUTURE RESEARCH GDP GOVERNMENT DEBT GOVERNMENT SECURITIES GROSS DOMESTIC PRODUCT HIGH INFLATION INFLATION INFLATION RATE INFLATION RATES INSTITUTIONAL ARRANGEMENTS INSTITUTIONAL DEVELOPMENT INSURANCE INTEREST RATES INTERNATIONAL BONDS INTERNATIONAL MARKETS INTERNATIONAL RESERVES INVESTMENT OPPORTUNITIES LAWS LEGAL FRAMEWORK LIQUIDITY LOCAL CURRENCY LOCAL GOVERNMENT MACRO POLICIES MACROECONOMIC FACTORS MACROECONOMIC INSTABILITY MACROECONOMIC MANAGEMENT MACROECONOMIC POLICY MACROECONOMIC STABILITY MACROECONOMICS MARKET PRICES MONETARY MANAGEMENT MONETARY POLICIES MONETARY POLICY MORAL HAZARD POLICY RESEARCH POLITICAL ECONOMY PRIVATE SECTOR PUBLIC DEBT PUBLIC FINANCE RISK PREMIUM SCALE EFFECT SCALE EFFECTS SECONDARY MARKETS SECURITIES SETTLEMENT SYSTEMS SHORT-TERM DEBT SOCIAL SECURITY STRUCTURE OF GOVERNMENT TAX TAX RATES TIME SERIES TIME VALUE OF MONEY TRANSITION ECONOMIES TRANSPARENCY MACROECONOMIC CORRELATIONS ACCOUNTING
Online Access:	http://documents.worldbank.org/curated/en/2003/03/2181643/government-bonds-domestic-foreign-currency-role-macroeconomic-institutional-factors http://hdl.handle.net/10986/18316

id	okr-10986-18316
recordtype	oai_dc
spelling	okr-10986-183162021-04-23T14:03:42Z Government Bonds in Domestic and Foreign Currency : The Role of Macroeconomic and Institutional Factors Claessens, Stijn Klingebiel, Daniela Schmukler, Sergio L. GOVERNMENT BONDS CURRENCY PARITY FINANCIAL CRISES MARKET DOWNTURNS DOMESTIC INVESTMENT EXCHANGE RATE STABILITY CURRENCY CONVERTIBILITY FOREIGN CURRENCY INSTITUTIONAL FRAMEWORK MACROECONOMIC CORRELATIONS ACCOUNTING ADB AVERAGE INFLATION BANK FOR INTERNATIONAL SETTLEMENTS BANK OF ENGLAND BANKING SYSTEM BANKING SYSTEMS BENCHMARKING BOND MARKETS BORROWING CAPITAL CONTROLS CAPITAL MARKETS CENTRAL GOVERNMENTS COMMERCIAL BANKS CORPORATE GOVERNANCE DEBT DEBT MANAGEMENT DEBT RATIOS DECISION MAKING DEMOCRATIC INSTITUTIONS DEPOSITS DEVELOPED COUNTRIES DEVELOPING COUNTRIES DOMESTIC ECONOMY ECONOMIC GROWTH ECONOMIC REVIEW ECONOMIES OF SCALE EMERGING ECONOMIES EMERGING MARKET ECONOMIES EMERGING MARKETS EXCHANGE RATE EXCHANGE RATE ARRANGEMENTS EXCHANGE RATE REGIME EXCHANGE RATE REGIMES EXCHANGE RATE RISK EXCHANGE RATES EXPENDITURES EXTERNAL DEBT EXTERNALITIES FINANCIAL CRISES FINANCIAL CRISIS FINANCIAL FRAGILITY FINANCIAL INTERMEDIATION FINANCIAL MARKETS FINANCIAL STRUCTURE FINANCIAL SYSTEM FISCAL DEFICITS FISCAL POLICIES FIXED COSTS FOREIGN CURRENCY FOREIGN CURRENCY DEBT FOREIGN EXCHANGE FOREIGN EXCHANGE RESERVES FUTURE RESEARCH GDP GOVERNMENT BONDS GOVERNMENT DEBT GOVERNMENT SECURITIES GROSS DOMESTIC PRODUCT HIGH INFLATION INFLATION INFLATION RATE INFLATION RATES INSTITUTIONAL ARRANGEMENTS INSTITUTIONAL DEVELOPMENT INSTITUTIONAL FRAMEWORK INSURANCE INTEREST RATES INTERNATIONAL BONDS INTERNATIONAL MARKETS INTERNATIONAL RESERVES INVESTMENT OPPORTUNITIES LAWS LEGAL FRAMEWORK LIQUIDITY LOCAL CURRENCY LOCAL GOVERNMENT MACRO POLICIES MACROECONOMIC FACTORS MACROECONOMIC INSTABILITY MACROECONOMIC MANAGEMENT MACROECONOMIC POLICY MACROECONOMIC STABILITY MACROECONOMICS MARKET PRICES MONETARY MANAGEMENT MONETARY POLICIES MONETARY POLICY MORAL HAZARD POLICY RESEARCH POLITICAL ECONOMY PRIVATE SECTOR PUBLIC DEBT PUBLIC FINANCE RISK PREMIUM SCALE EFFECT SCALE EFFECTS SECONDARY MARKETS SECURITIES SETTLEMENT SYSTEMS SHORT-TERM DEBT SOCIAL SECURITY STRUCTURE OF GOVERNMENT TAX TAX RATES TIME SERIES TIME VALUE OF MONEY TRANSITION ECONOMIES TRANSPARENCY MACROECONOMIC CORRELATIONS ACCOUNTING The development of government bond markets and, in particular, their currency composition have recently received much interest, partly because of their relation with financial crises. The authors study the determinants of the size and currency composition of government bond markets for a panel of industrial and developing countries. They find that countries with larger economies, greater domestic investor bases, and more flexible exchange rate regimes have larger domestic currency bond markets, while smaller economies rely more on foreign currency bonds. Better institutional frameworks and macroeconomic fundamentals enhance both domestic currency bond markets and increase countries' ability to issue foreign currency bonds, while they raise the share of foreign exchange bonds. 2014-05-14T20:36:00Z 2014-05-14T20:36:00Z 2003-03 http://documents.worldbank.org/curated/en/2003/03/2181643/government-bonds-domestic-foreign-currency-role-macroeconomic-institutional-factors http://hdl.handle.net/10986/18316 English en_US Policy Research Working Paper;No. 2986 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English en_US
topic	GOVERNMENT BONDS CURRENCY PARITY FINANCIAL CRISES MARKET DOWNTURNS DOMESTIC INVESTMENT EXCHANGE RATE STABILITY CURRENCY CONVERTIBILITY FOREIGN CURRENCY INSTITUTIONAL FRAMEWORK MACROECONOMIC CORRELATIONS ACCOUNTING ADB AVERAGE INFLATION BANK FOR INTERNATIONAL SETTLEMENTS BANK OF ENGLAND BANKING SYSTEM BANKING SYSTEMS BENCHMARKING BOND MARKETS BORROWING CAPITAL CONTROLS CAPITAL MARKETS CENTRAL GOVERNMENTS COMMERCIAL BANKS CORPORATE GOVERNANCE DEBT DEBT MANAGEMENT DEBT RATIOS DECISION MAKING DEMOCRATIC INSTITUTIONS DEPOSITS DEVELOPED COUNTRIES DEVELOPING COUNTRIES DOMESTIC ECONOMY ECONOMIC GROWTH ECONOMIC REVIEW ECONOMIES OF SCALE EMERGING ECONOMIES EMERGING MARKET ECONOMIES EMERGING MARKETS EXCHANGE RATE EXCHANGE RATE ARRANGEMENTS EXCHANGE RATE REGIME EXCHANGE RATE REGIMES EXCHANGE RATE RISK EXCHANGE RATES EXPENDITURES EXTERNAL DEBT EXTERNALITIES FINANCIAL CRISES FINANCIAL CRISIS FINANCIAL FRAGILITY FINANCIAL INTERMEDIATION FINANCIAL MARKETS FINANCIAL STRUCTURE FINANCIAL SYSTEM FISCAL DEFICITS FISCAL POLICIES FIXED COSTS FOREIGN CURRENCY FOREIGN CURRENCY DEBT FOREIGN EXCHANGE FOREIGN EXCHANGE RESERVES FUTURE RESEARCH GDP GOVERNMENT BONDS GOVERNMENT DEBT GOVERNMENT SECURITIES GROSS DOMESTIC PRODUCT HIGH INFLATION INFLATION INFLATION RATE INFLATION RATES INSTITUTIONAL ARRANGEMENTS INSTITUTIONAL DEVELOPMENT INSTITUTIONAL FRAMEWORK INSURANCE INTEREST RATES INTERNATIONAL BONDS INTERNATIONAL MARKETS INTERNATIONAL RESERVES INVESTMENT OPPORTUNITIES LAWS LEGAL FRAMEWORK LIQUIDITY LOCAL CURRENCY LOCAL GOVERNMENT MACRO POLICIES MACROECONOMIC FACTORS MACROECONOMIC INSTABILITY MACROECONOMIC MANAGEMENT MACROECONOMIC POLICY MACROECONOMIC STABILITY MACROECONOMICS MARKET PRICES MONETARY MANAGEMENT MONETARY POLICIES MONETARY POLICY MORAL HAZARD POLICY RESEARCH POLITICAL ECONOMY PRIVATE SECTOR PUBLIC DEBT PUBLIC FINANCE RISK PREMIUM SCALE EFFECT SCALE EFFECTS SECONDARY MARKETS SECURITIES SETTLEMENT SYSTEMS SHORT-TERM DEBT SOCIAL SECURITY STRUCTURE OF GOVERNMENT TAX TAX RATES TIME SERIES TIME VALUE OF MONEY TRANSITION ECONOMIES TRANSPARENCY MACROECONOMIC CORRELATIONS ACCOUNTING
spellingShingle	GOVERNMENT BONDS CURRENCY PARITY FINANCIAL CRISES MARKET DOWNTURNS DOMESTIC INVESTMENT EXCHANGE RATE STABILITY CURRENCY CONVERTIBILITY FOREIGN CURRENCY INSTITUTIONAL FRAMEWORK MACROECONOMIC CORRELATIONS ACCOUNTING ADB AVERAGE INFLATION BANK FOR INTERNATIONAL SETTLEMENTS BANK OF ENGLAND BANKING SYSTEM BANKING SYSTEMS BENCHMARKING BOND MARKETS BORROWING CAPITAL CONTROLS CAPITAL MARKETS CENTRAL GOVERNMENTS COMMERCIAL BANKS CORPORATE GOVERNANCE DEBT DEBT MANAGEMENT DEBT RATIOS DECISION MAKING DEMOCRATIC INSTITUTIONS DEPOSITS DEVELOPED COUNTRIES DEVELOPING COUNTRIES DOMESTIC ECONOMY ECONOMIC GROWTH ECONOMIC REVIEW ECONOMIES OF SCALE EMERGING ECONOMIES EMERGING MARKET ECONOMIES EMERGING MARKETS EXCHANGE RATE EXCHANGE RATE ARRANGEMENTS EXCHANGE RATE REGIME EXCHANGE RATE REGIMES EXCHANGE RATE RISK EXCHANGE RATES EXPENDITURES EXTERNAL DEBT EXTERNALITIES FINANCIAL CRISES FINANCIAL CRISIS FINANCIAL FRAGILITY FINANCIAL INTERMEDIATION FINANCIAL MARKETS FINANCIAL STRUCTURE FINANCIAL SYSTEM FISCAL DEFICITS FISCAL POLICIES FIXED COSTS FOREIGN CURRENCY FOREIGN CURRENCY DEBT FOREIGN EXCHANGE FOREIGN EXCHANGE RESERVES FUTURE RESEARCH GDP GOVERNMENT BONDS GOVERNMENT DEBT GOVERNMENT SECURITIES GROSS DOMESTIC PRODUCT HIGH INFLATION INFLATION INFLATION RATE INFLATION RATES INSTITUTIONAL ARRANGEMENTS INSTITUTIONAL DEVELOPMENT INSTITUTIONAL FRAMEWORK INSURANCE INTEREST RATES INTERNATIONAL BONDS INTERNATIONAL MARKETS INTERNATIONAL RESERVES INVESTMENT OPPORTUNITIES LAWS LEGAL FRAMEWORK LIQUIDITY LOCAL CURRENCY LOCAL GOVERNMENT MACRO POLICIES MACROECONOMIC FACTORS MACROECONOMIC INSTABILITY MACROECONOMIC MANAGEMENT MACROECONOMIC POLICY MACROECONOMIC STABILITY MACROECONOMICS MARKET PRICES MONETARY MANAGEMENT MONETARY POLICIES MONETARY POLICY MORAL HAZARD POLICY RESEARCH POLITICAL ECONOMY PRIVATE SECTOR PUBLIC DEBT PUBLIC FINANCE RISK PREMIUM SCALE EFFECT SCALE EFFECTS SECONDARY MARKETS SECURITIES SETTLEMENT SYSTEMS SHORT-TERM DEBT SOCIAL SECURITY STRUCTURE OF GOVERNMENT TAX TAX RATES TIME SERIES TIME VALUE OF MONEY TRANSITION ECONOMIES TRANSPARENCY MACROECONOMIC CORRELATIONS ACCOUNTING Claessens, Stijn Klingebiel, Daniela Schmukler, Sergio L. Government Bonds in Domestic and Foreign Currency : The Role of Macroeconomic and Institutional Factors
relation	Policy Research Working Paper;No. 2986
description	The development of government bond markets and, in particular, their currency composition have recently received much interest, partly because of their relation with financial crises. The authors study the determinants of the size and currency composition of government bond markets for a panel of industrial and developing countries. They find that countries with larger economies, greater domestic investor bases, and more flexible exchange rate regimes have larger domestic currency bond markets, while smaller economies rely more on foreign currency bonds. Better institutional frameworks and macroeconomic fundamentals enhance both domestic currency bond markets and increase countries' ability to issue foreign currency bonds, while they raise the share of foreign exchange bonds.
format	Publications & Research :: Policy Research Working Paper
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 Macroeconomic and Institutional Factors
title_short	Government Bonds in Domestic and Foreign Currency : The Role of Macroeconomic and Institutional Factors
title_full	Government Bonds in Domestic and Foreign Currency : The Role of Macroeconomic and Institutional Factors
title_fullStr	Government Bonds in Domestic and Foreign Currency : The Role of Macroeconomic and Institutional Factors
title_full_unstemmed	Government Bonds in Domestic and Foreign Currency : The Role of Macroeconomic and Institutional Factors
title_sort	government bonds in domestic and foreign currency : the role of macroeconomic and institutional factors
publisher	World Bank, Washington, DC
publishDate	2014
url	http://documents.worldbank.org/curated/en/2003/03/2181643/government-bonds-domestic-foreign-currency-role-macroeconomic-institutional-factors http://hdl.handle.net/10986/18316
_version_	1764439317365653504

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

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