Credit crunch: Chinese infrastructure lending and Lao sovereign debt

The objective of this article is to show the perspectives of the euro area sovereign debt crisis for the Brazilian economy. The euro area sovereign debt crisis, beginning in 2010, could be seen as fallout of the global financial crisis of 2008/09. The ways to the crisis for Portugal, Ireland, Italy, Greece and Spain were different: Credit booms and housing bubbles, banking crises, unsustainable public indebting. The impacts on Brazil were felt in 2011 and 2012 with the Brazilian economy almost stagnating. The article evaluates the impacts of the global financial crisis 2008/09 on the Brazilian economy through real and monetary channels, as well as through the contagion of expectations, to find similarities with the present crisis. The main influence was the fall of Brazilian exportations and the credit crunch following the failure of Lehman Brothers in September 2008. The article supposes that the impacts of the euro area crisis shall be less problematic than that of the global financial crisis of 2008/09, because exportations are geographically more diversified and a credit crunch could be confronted by the BNDES and the public banks in Brazil. But the main argument is that the stability of Brazilian institutions, the geographical diversification of exportations and the increasing demand for commodities by the emerging markets in Asia will soften the impacts of the present crisis for Brazil, supposing that contagion of the sovereign debt crisis in the euro area will not expressively hit the more important economic powers in Europe and the world. The causes of the stagnating Brazilian economy in 2012 probably are not only the problems in the euro area.

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The Credit Crunch

10.1596/26275 ◽

2017 ◽

Author(s):

◽

Keyword(s):

Credit Crunch

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Lending to the Borrower from Hell

10.23943/princeton/9780691151496.001.0001 ◽

2017 ◽

Cited By ~ 1

Author(s):

Mauricio Drelichman ◽

Hans-Joachim Voth

Keyword(s):

United States ◽

Sixteenth Century ◽

Sovereign Debt ◽

Risk Sharing ◽

The United States ◽

Philip Ii ◽

Loan Contracts ◽

The Right ◽

Intelligent Model ◽

New Evidence

Why do lenders time and again loan money to sovereign borrowers who promptly go bankrupt? When can this type of lending work? As the United States and many European nations struggle with mountains of debt, historical precedents can offer valuable insights. This book looks at one famous case—the debts and defaults of Philip II of Spain. Ruling over one of the largest and most powerful empires in history, King Philip defaulted four times. Yet he never lost access to capital markets and could borrow again within a year or two of each default. Exploring the shrewd reasoning of the lenders who continued to offer money, the book analyzes the lessons from this historical example. Using detailed new evidence collected from sixteenth-century archives, the book examines the incentives and returns of lenders. It provides powerful evidence that in the right situations, lenders not only survive despite defaults—they thrive. It also demonstrates that debt markets cope well, despite massive fluctuations in expenditure and revenue, when lending functions like insurance. The book unearths unique sixteenth-century loan contracts that offered highly effective risk sharing between the king and his lenders, with payment obligations reduced in bad times. A fascinating story of finance and empire, this book offers an intelligent model for keeping economies safe in times of sovereign debt crises and defaults.

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European Economies Stability Faced With Potential Outburst of Sovereign Debt Crisis. An Empirical Study Using Neural Network

INTERNATIONAL JOURNAL OF COMPUTERS & TECHNOLOGY ◽

10.24297/ijct.v12i2.3318 ◽

2013 ◽

Vol 12 (2) ◽

pp. 3255-3260

Author(s):

Stelian Stancu ◽

Alexandra Maria Constantin

Keyword(s):

Neural Network ◽

Sovereign Debt ◽

Debt Crisis ◽

Banking System ◽

Sovereign Debt Crisis ◽

European Level ◽

Continuous Growth ◽

Economic Context ◽

European Economies ◽

The Impact

Instilment, on a European level, of a state incompatible with the state of stability on a macroeconomic level and in the financial-banking system lead to continuous growth of vulnerability of European economies, situated at the verge of an outburst of sovereign debt crises. In this context, the current papers main objective is to produce a study regarding the vulnerability of European economies faced with potential outburst of sovereign debt crisis, which implies quantitative analysis of the impact of sovereign debt on the sensitivity of the European Unions economies. The paper also entails the following specific objectives: completing an introduction in the current European economic context, conceptualization of the notion of â€œsovereign debt crisis, presenting the methodology and obtained empirical results, as well as exposition of the conclusions.

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