Euro Currency Risk and the Geography of Debt Flows to Peripheral European Monetary Union Members

The pattern of debt flows to peripheral European Monetary Union members seems puzzling: they are mostly indirect and channeled through the large countries of the European Monetary Union. This paper examines to what extent the introduction of the eu...

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Bibliographic Details
Main Authors:	Ersal-Kiziler, Eylem, Nguyen, Ha
Format:	Working Paper
Language:	English en_US
Published:	World Bank, Washington, DC 2016
Subjects:	FOREIGN ASSET MONETARY POLICY RISKS HOLDING REGULATORY FRAMEWORK OUTSIDE INVESTORS FOREIGN ASSET POSITION NOMINAL WAGE EXPOSURES INTERNATIONAL CAPITAL BOND HOLDERS INTEREST INTERNATIONAL SETTLEMENT RATE OF RETURN MARGINAL COST MONEY SUPPLY INTEREST RATE PORTFOLIO CHOICE EXCHANGE DISCOUNT RATE ASSET PORTFOLIO FOREIGN EXCHANGE RISK DEFAULT RISK BONDS EUROPEAN MONETARY UNION EQUILIBRIUM LOAN DISCOUNT BUDGET CONSTRAINTS BORROWERS ASSET POSITIONS PORTFOLIO CHOICES ASSET POSITION INTERNATIONAL BANK LENDER BUDGET CENTRAL BANK STEADY STATE MONEY HOLDING EXOGENOUS SHOCKS CREDIT RATINGS CURRENCY TRADABLE GOOD PORTFOLIOS MONEY DEBTS MONETARY UNION BANK DEBT MONEY HOLDINGS MARKETS DEBT RETURN FOREIGN ASSETS SETTLEMENT DEBT FLOWS CONSUMPTION EXPENDITURE OPEN ECONOMY BUSINESS CYCLE LENDERS INTERNATIONAL DEBT FOREIGN LENDER INTERNATIONAL ECONOMICS LOANS BOND HOLDER CRISIS COUNTRIES FINANCE NEGATIVE SHOCK LIBERALIZATION BAILOUT INFORMATION ASYMMETRY DEBT HOLDINGS EXPENDITURE MARKET SEGMENTATIONS INTERNATIONAL BORROWING EQUITY TRANSACTION INVESTORS CONSUMPTION GENERAL EQUILIBRIUM SOVEREIGN DEBT OUTSIDE LENDERS MARKET SEGMENTATION BOND MARKETS GOOD GLOBAL BOND TRADABLE GOODS BOND PORTFOLIO STATE BOND RETURNS BOND MARKET RISK EXPOSURE ECONOMY BOND PORTFOLIOS AGGREGATE CONSUMPTION SHARES ASSETS REAL EXCHANGE RATE TRANSACTION COSTS MARKET DEFAULT FOREIGN EXCHANGE PUBLIC DEBT INTERNATIONAL PORTFOLIO MARKET STRUCTURES CREDIT RISK EXPOSURE HOLDINGS INSURANCE BUSINESS CYCLES CURRENCIES DEBT MARKETS DEBT MARKET EQUITY HOLDINGS GOODS INVESTOR STOCKS INVESTMENT DOLLAR PRICES RISK BOND SOVEREIGN BONDS SHARE COLLATERAL PORTFOLIO HOLDINGS SUPPLY CURRENCY RISK MONEY MARKET PORTFOLIO INVESTMENT INVESTMENTS LENDING NOMINAL INTEREST RATE EXCHANGE RATE RISK EXCHANGE RATE RISK AVERSION SECONDARY MARKET LIABILITIES HEDGE DOMESTIC INVESTORS WEIGHTS CONSUMPTION BASKET CLARITY DOLLAR VALUE ECONOMIES INVESTING
Online Access:	http://documents.worldbank.org/curated/en/2016/06/26541999/euro-currency-risk-geography-debt-flows-peripheral-european-monetary-union-members http://hdl.handle.net/10986/24655

Internet

http://documents.worldbank.org/curated/en/2016/06/26541999/euro-currency-risk-geography-debt-flows-peripheral-european-monetary-union-members
http://hdl.handle.net/10986/24655

Euro Currency Risk and the Geography of Debt Flows to Peripheral European Monetary Union Members

Internet

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