{
  "title": "IMF Staff Papers, Volume 56, No. 4",
  "publication": "IMF Staff Papers, November 4, 2009",
  "sourceUrl": "https://www.imf.org/en/publications/imf-staff-papers/issues/2016/12/31/imf-staff-papers-volume-56-no-23317",
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  "summary": "This paper empirically evaluates four types of costs that may result from an international sovereign default: reputational costs, international trade exclusion costs, costs to the domestic economy through the financial system, and political costs to the authorities.",
  "sections": [
    {
      "heading": "Summary of empirical evaluation",
      "content": "- The paper empirically evaluates four types of costs that may result from an international sovereign default:\n  - reputational costs,\n  - international trade exclusion costs,\n  - costs to the domestic economy through the financial system,\n  - political costs to the authorities.\n- It finds that the economic costs are generally significant but short-lived, and sometimes do not operate through conventional channels.\n- The political consequences of a debt crisis seem to be particularly dire for incumbent governments and finance ministers, broadly in line with what happens in currency crises."
    },
    {
      "heading": "Key findings",
      "content": "- Economic costs:\n  - Generally significant but short-lived.\n  - Sometimes do not operate through conventional channels.\n- Political costs:\n  - Particularly dire for incumbent governments and finance ministers.\n  - Political consequences align broadly with patterns observed in currency crises."
    },
    {
      "heading": "Subjects and keywords",
      "content": "- Subject: Banking, Economic integration, External debt, Financial markets, Foreign exchange, Monetary unions, Production, Real effective exchange rates, Stock markets, Total factor productivity, Trade credits\n- Keywords: Africa, Baltics, Caribbean, debt projection, default episode, Global, home terms of trade, Monetary unions, productivity gain, Real effective exchange rates, Southeast Asia, SP, Stock markets, terms-of-trade response, terms-of-trade shock, Total factor productivity, Trade credits\n\n---\n\n\nSource: https://www.imf.org/en/publications/imf-staff-papers/issues/2016/12/31/imf-staff-papers-volume-56-no-23317"
    }
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    "Published: November 4, 2009",
    "Series: IMF Staff Papers",
    "Volume: 56",
    "DOI: https://doi.org/10.5089/9781589069107.024",
    "The paper empirically evaluates four types of costs that may result from an international sovereign default:",
    "It finds that the economic costs are generally significant but short-lived, and sometimes do not operate through conventional channels.",
    "The political consequences of a debt crisis seem to be particularly dire for incumbent governments and finance ministers, broadly in line with what happens in currency crises.",
    "Economic costs:",
    "Political costs:",
    "Subject: Banking, Economic integration, External debt, Financial markets, Foreign exchange, Monetary unions, Production, Real effective exchange rates, Stock markets, Total factor productivity, Trade credits",
    "Keywords: Africa, Baltics, Caribbean, debt projection, default episode, Global, home terms of trade, Monetary unions, productivity gain, Real effective exchange rates, Southeast Asia, SP, Stock markets, terms-of-trade response, terms-of-trade shock, Total factor productivity, Trade credits"
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