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Author/Editor:
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Adler, Gustavo
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Publication Date:
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July 01, 2012
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Electronic Access:
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Free Full text
(PDF file size is 1,235KB).
Use the free
Adobe Acrobat Reader
to view this PDF file
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Disclaimer: This Working Paper should not be reported as representing the views of the IMF.
The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate
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Summary:
Large fiscal financing needs, both in advanced and emerging market economies, have often been met by borrowing heavily from domestic banks. As public debt approached sustainability limits in a number of countries, however, high bank exposure to sovereign risk created a fragile inter-dependence between fiscal and bank solvency. This paper presents a simple model of twin (sovereign and banking) crisis that stresses how this interdependence creates conditions conducive to a self-fulfilling crisis.
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Order a print copy
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Series:
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Working Paper No. 12/178
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Subject(s):
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Banks | Financial crisis | Fiscal risk | Public debt | Sovereign debt
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Author's Keyword(s):
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Banking crisis | sovereign debt crisis | twin crisis. |
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English
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Publication Date:
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July 01, 2012
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Format:
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Paper
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Stock No:
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WPIEA2012178
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Pages:
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28
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Price:
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US$18.00 )
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Please address any questions about this title to
publications@imf.org
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