Pablo E. Guidotti
- Published in print:
- 2003
- Published Online:
- February 2013
- ISBN:
- 9780226302676
- eISBN:
- 9780226302683
- Item type:
- chapter
- Publisher:
- University of Chicago Press
- DOI:
- 10.7208/chicago/9780226302683.003.0010
- Subject:
- Economics and Finance, Development, Growth, and Environmental
A country's risk management strategy to volatility should focus on three main areas: the financial system, public debt management, and the corporate sector. This chapter articulates the main elements ...
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A country's risk management strategy to volatility should focus on three main areas: the financial system, public debt management, and the corporate sector. This chapter articulates the main elements of a country's strategy to deal with liquidity (or rollover) risk. It focuses on selected issues that were crucial in dealing with market volatility in the 1990s, and whose importance has not been adequately emphasized or, in some cases, remains controversial. In the analysis, frequent references are made to the recent experience of some emerging market economies, in particular that of Argentina during the 1990s. The strategy focuses on the financial system and on the financing policies in the public and the private sector. Once the main elements are presented, the implications for exchange rate policy, as well as for the role of the IMF, are discussed.Less
A country's risk management strategy to volatility should focus on three main areas: the financial system, public debt management, and the corporate sector. This chapter articulates the main elements of a country's strategy to deal with liquidity (or rollover) risk. It focuses on selected issues that were crucial in dealing with market volatility in the 1990s, and whose importance has not been adequately emphasized or, in some cases, remains controversial. In the analysis, frequent references are made to the recent experience of some emerging market economies, in particular that of Argentina during the 1990s. The strategy focuses on the financial system and on the financing policies in the public and the private sector. Once the main elements are presented, the implications for exchange rate policy, as well as for the role of the IMF, are discussed.
Y.V. Reddy, Narayan Valluri, and Partha Ray
- Published in print:
- 2014
- Published Online:
- November 2014
- ISBN:
- 9780199452651
- eISBN:
- 9780199084524
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199452651.003.0010
- Subject:
- Economics and Finance, Financial Economics
The global financial crisis has brought about a dramatic change in the magnitudes of public debt, profiles of creditors and debtors, and maturity structures. The management of fiscal policy and large ...
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The global financial crisis has brought about a dramatic change in the magnitudes of public debt, profiles of creditors and debtors, and maturity structures. The management of fiscal policy and large public debt in advanced economies in the context of the crisis has influenced monetary management in several ways. Some of the lessons to be drawn from the impact of the crisis include the role of financial sector in public debt, the changing role of multilateral institutions, the criticality of residence of holders of debt securities as well as currency of denomination, and the somewhat porous boundary of fiscal obligations. The recent improvements in global financial architecture do not significantly improve the global environment for management of public debt. The outlook for global public debt is different from the past, requiring close coordination between fiscal and monetary policies as well as regulation of financial sector.Less
The global financial crisis has brought about a dramatic change in the magnitudes of public debt, profiles of creditors and debtors, and maturity structures. The management of fiscal policy and large public debt in advanced economies in the context of the crisis has influenced monetary management in several ways. Some of the lessons to be drawn from the impact of the crisis include the role of financial sector in public debt, the changing role of multilateral institutions, the criticality of residence of holders of debt securities as well as currency of denomination, and the somewhat porous boundary of fiscal obligations. The recent improvements in global financial architecture do not significantly improve the global environment for management of public debt. The outlook for global public debt is different from the past, requiring close coordination between fiscal and monetary policies as well as regulation of financial sector.
