{
  "title": "Balance Sheets and Debt Crises – Empirical Regularities for Modern Cases of Sovereign Distress",
  "publication": "IMF Working Papers, May 4, 2021",
  "sourceUrl": "https://www.imf.org/en/publications/wp/issues/2021/05/04/balance-sheets-and-debt-crises-empirical-regularities-for-modern-cases-of-sovereign-distress-50145",
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  "summary": "Public and private sector balance sheets are an important component to any analysis of debt sustainability. A vulnerable and indebted private sector can become a sudden liability for the government; alternatively, resilient household and bank balance sheets may reveal potential sources of funding fo",
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    {
      "heading": "Overview",
      "content": "- Authors: Alexis Meyer-Cirkel, Gonzalo Huertas\n- Publication date: May 4, 2021\n- Paper series: IMF Working Papers, Working Paper No. 2021/125\n- Core focus: Documenting empirical regularities in the behavior of macroeconomic variables during debt crises and demonstrating how macroeconomic fundamentals and sectoral net worth affect default likelihood.\n- Framing: Public and private sector balance sheets as key components in debt sustainability analysis; private sector vulnerability can become a government liability, while resilient household and bank balance sheets may provide funding sources for the sovereign during fiscal distress."
    },
    {
      "heading": "Key findings and empirical regularities",
      "content": "- Balance sheet dynamics matter for sovereign distress:\n  - A vulnerable and indebted private sector can become a sudden liability for the government.\n  - Resilient household and bank balance sheets may reveal potential sources of funding for the sovereign during times of fiscal distress.\n- The paper documents empirical regularities in macroeconomic behavior during debt crises.\n- Both macroeconomic fundamentals and sectoral net worth influence the likelihood of undergoing default."
    },
    {
      "heading": "Subjects and keywords",
      "content": "- Subject areas:\n  - Commercial banks\n  - Debt default\n  - External debt\n  - Financial crises\n  - Financial institutions\n  - Financial statements\n  - Public debt\n  - Public financial management (PFM)\n- Keywords:\n  - balance sheet dynamics\n  - banking sector balance sheet data\n  - Commercial banks\n  - Debt default\n  - default episode\n  - default probability\n  - Financial statements\n  - Global\n  - predicting default\n  - sectoral balance sheets\n\n---\n\n Content in this bundle\n\n- Working Paper\n  - Working Paper (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - Working Paper (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/wp/issues/2021/05/04/balance-sheets-and-debt-crises-empirical-regularities-for-modern-cases-of-sovereign-distress-50145"
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    "Authors: Alexis Meyer-Cirkel, Gonzalo Huertas",
    "Published: May 4, 2021",
    "Series: IMF Working Papers",
    "DOI: https://doi.org/10.5089/9781513574011.001",
    "Authors: Alexis Meyer-Cirkel, Gonzalo Huertas",
    "Publication date: May 4, 2021",
    "Paper series: IMF Working Papers, Working Paper No. 2021/125",
    "Core focus: Documenting empirical regularities in the behavior of macroeconomic variables during debt crises and demonstrating how macroeconomic fundamentals and sectoral net worth affect default likelihood.",
    "Framing: Public and private sector balance sheets as key components in debt sustainability analysis; private sector vulnerability can become a government liability, while resilient household and bank balance sheets may provide funding sources for the sovereign during fiscal distress.",
    "Balance sheet dynamics matter for sovereign distress:",
    "The paper documents empirical regularities in macroeconomic behavior during debt crises.",
    "Both macroeconomic fundamentals and sectoral net worth influence the likelihood of undergoing default.",
    "Subject areas:",
    "Keywords:",
    "**Working Paper**"
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