Local Currency Bond Markets
By John D. Burger, F. Warnock. International Monetary Fund Staff Papers, 2006
204 citations recorded by the source corpus.
We analyze the development of 49 local bond markets. Our main finding is that policies and laws matter: Countries with stable inflation rates and strong creditor rights have more developed local bond markets and rely less on foreign-currency-denominated bonds. The results suggest that "original sin" is a misnomer. Emerging economies are not inherently dependent upon foreign-currency debt. Rather, by improving policy performance and strengthening institutions they may develop local currency bond markets, reduce their currency mismatch, and lessen the likelihood of future crises.
Subfields: Economics and Econometrics, Finance
View Paper: https://www.semanticscholar.org/paper/4eb50127ddb5a27fed354170f16372ad961d4ce8
How researchers see this paper
The researchers whose trusted networks rank it highest, strongest advocate first. Every researcher gets a different order.
In Economics and Econometrics
- Philip R. Lane
- G. Milesi-Ferretti
- Christopher M. Meissner
- D. Stuckler
- M. Bordo
- G. Zucman
- David E. Cook
- Alan Sutherland
In Finance
- Philip R. Lane
- G. Milesi-Ferretti
- Christopher M. Meissner
- D. Stuckler
- M. Bordo
- G. Zucman
- Nicolas Coeurdacier
- David E. Cook
Citations in the corpus
- Foreign Participation in Local-Currency Bond Markets (2004, unknown): “Taken as a whole our results hint at a virtuous cycle of bond market development.”
- The External Wealth of Nations Revisited: International Financial Integration in the Aftermath of the Global Financial Crisis (2018, background): “Related papers include Burger and Warnock (2006), Lane and Milesi-Ferretti (2008), Horioka and others (2015), Du and Schreger (2016), and especially Arslanalp and Tsuda (2014a, b), who assembled a comprehensive cross-country dataset on holders of general government debt for both advanced economies…”
- Foreign currency debt, financial crises and economic growth: A long-run view (2010, background): “while lenders increasingly participate in domestic bond markets ( Burger and Warnock, 2006 ).1 Improved liquidity and depth have expanded the development of local financial”