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Trade Dynamics in Sovereign Debt Crises / Tamon Asonuma, Marcos Chamon, Yasumasa Morito, Akira Sasahara.
- Format:
- Book
- Government document
- Author/Creator:
- Asonuma, Tamon.
- Series:
- IMF Working Papers; Working Paper ; No. 2025/240
- IMF Working Papers
- Language:
- English
- Physical Description:
- 1 online resource (33 pages)
- Place of Publication:
- Washington, D.C. : International Monetary Fund, 2025.
- Summary:
- Sovereign debt restructurings can have large impacts on trade, with a significant compression of imports and a more ambiguous effect on exports. We show that the magnitude of that impact depends on whether restructurings preempt a default or take place after payments have been missed, with the latter associated with longer and deeper crises. Import compression is significantly higher following post-default restructurings, which also tend to be associated with higher exports relative to preemptive restructurings. This is consistent with the need for a larger external adjustment following a default. We also show how the effect varies across types of goods, and a larger impact when initial aggregate domestic demand in the debtor’s economy is high.
- Notes:
- Description based on print version record.
- ISBN:
- 979-82-290-2759-5
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