{"product_id":"sovereign-debt-crisis-and-international-financial-architecture-von-christoph-yew","title":"Sovereign Debt Crisis and International Financial Architecture","description":"\u003cp\u003eSeminar paper from the year 2006 in the subject Business economics - Economic Policy, grade: 2.0, University of Osnabrück (Fachbereich Internationale Wirtschaftspolitik), course: Schuldenkrisen, language: English, abstract: If we have a look at the composition of total debt of different countries it is easy to\u003c\/p\u003e\u003cp\u003esee (Figure 1.2) that from 1992 to 2002 the advanced countries¿ total debts mainly\u003c\/p\u003e\u003cp\u003econsisted of domestic currency, whereas those of emerging market countries where\u003c\/p\u003e\u003cp\u003emainly borrowed in foreign currency. If we focus our view on sovereign debt only,\u003c\/p\u003e\u003cp\u003ethis difference vanishes. From 1980 to 2003 about 99.7 percent (Table 1) of sovereign\u003c\/p\u003e\u003cp\u003edebt in emerging market countries was borrowed in foreign currency. In advanced\u003c\/p\u003e\u003cp\u003eeconomies it was slightly less (92.5%). Nevertheless, in both cases the U.S. dollar was\u003c\/p\u003e\u003cp\u003ethe dominating foreign currency. A reason for this might be that this currency is\u003c\/p\u003e\u003cp\u003econsidered as very important in international trade.\u003c\/p\u003e\u003cp\u003eA comparison between these facts leads me to the conclusion that private persons in\u003c\/p\u003e\u003cp\u003eadvanced countries trust their own currency, whereas private persons in emerging\u003c\/p\u003e\u003cp\u003emarket economies seem to trust foreign currencies. Otherwise the currency\u003c\/p\u003e\u003cp\u003ecomposition between total debt and sovereign debt would not differ so much from\u003c\/p\u003e\u003cp\u003eeach other. Another interesting fact concerns which other currencies states prefer to\u003c\/p\u003e\u003cp\u003eborrow in. They like advanced economies¿ currencies instead those of emerging\u003c\/p\u003e\u003cp\u003emarket countries.\u003c\/p\u003e\u003cp\u003eAnother important point concerning public debt structure is their composition\u003c\/p\u003e\u003cp\u003estructure concerning maturity. It can be seen (Figure 4.2) that during 1988 the average\u003c\/p\u003e\u003cp\u003ematurity of sovereign debt issued in both kinds of countries was little below 8 years.\u003c\/p\u003e\u003cp\u003eBut during the following 14 years the average maturity rate in emerging market\u003c\/p\u003e\u003cp\u003ecountries decreased to about 5 years while the maturity rate of advanced countries\u003c\/p\u003e\u003cp\u003esovereign debt increased to almost 10 years. This tendency towards short-term debt\u003c\/p\u003e\u003cp\u003ecan also be seen on Figure 4.1. It is interesting to note the fall in 1999 in both markets\u003c\/p\u003e\u003cp\u003e(Figure 4.2) which was nevertheless stronger in emerging countries.[...]\u003c\/p\u003e\u003cdiv class=\"aw-variant-hidden-subtitle-div\" id=\"aw-variant-subtitle-9783656146261\"\u003e\u003ch3\u003e\u003c\/h3\u003e\u003c\/div\u003e","brand":"Libri","offers":[{"title":"Softcover - 9783656146261","offer_id":39432159264861,"sku":"9783656146261","price":18.95,"currency_code":"EUR","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0940\/0622\/files\/20f4f190-334c-4082-8f03-77c1c6abc04f.jpg?v=1777873472","url":"https:\/\/shop.autorenwelt.de\/products\/sovereign-debt-crisis-and-international-financial-architecture-von-christoph-yew","provider":"Autorenwelt Shop","version":"1.0","type":"link"}