Suchergebnisse

This paper proposes alternatives for governments to deal with the current pandemic crisis today. It suggests ways to deal with the increasing debt levels as a result of the fiscal stimulus issued to cushion the effects of a tremendous shock to the economy.Firstly, the paper proposes to protect the vulnerable group (based on debt-to-income ratio or its debt-servicing ability) through debt forgiveness and help SMEs through debt relief via debt restructuring for their outstanding loans. To finance this, we propose to convert the increased public debt from these initiatives into equity through a GDP-linked sukuk to stabilise a sovereign's debt to GDP ratio. The repayment on these sukuk will be in proportion to the country's GDP whereby the repayment automatically declines when growth is weak and increases when GDP is strong. In doing so, an anticipated deep recession caused by the global pandemic slowdown will makes it less likely to trigger a sovereign debt crisis. Secondly, such a strategy would provide the issuing government with economic reprieve when growth weakens and tax receipts decline. At the same time, investors can view these sukuk as an alternative asset class through exposure to the real economy, given the low interest rate environment. Both sides are incentivized by the debt-stabilising effects of issuance that would make sovereign defaults less likely and balance risk-taking.

The Congressional Budget Office reports the 2024 budget deficit will near $2 trillion.

Abstract We provide a simple model for analyzing how debt forgiveness affects the stock price of a lending bank. Our model shows that although debt forgiveness increases shareholder wealth of a bank in healthy financial condition, it decreases shareholder wealth of a bank in unhealthy financial condition. We empirically investigate the announcement effect of debt forgiveness on bank stock prices in Japanese markets. On average, lending banks experience a significant negative announcement effect with respect to debt forgiveness. Consistent with the prediction of the model, we find a negative relation between the announcement effect and the net bad loan ratio as a proxy of the unhealthiness of the financial condition of the bank.

This paper studies sovereign debt relief in a long-term perspective. We quantify the relief achieved through default and restructuring in two distinct samples: 1920-1939, focusing on the defaults on official (government to government) debt in advanced economies after World War I; and 1978-2010, focusing on emerging market debt crises with private external creditors. Debt relief was substantial in both eras, averaging 21% of GDP in the 1930s and 16% of GDP in recent decades. We then analyze the aftermath of debt relief and conduct a difference-in-differences analysis around the synchronous war debt defaults of 1934 and the Baker and Brady initiatives of the 1980s/1990s. The economic landscape of debtor countries improves significantly after debt relief operations, but only if these involve debt write-offs. Softer forms of debt relief, such as maturity extensions and interest rate reductions, are not generally followed by higher economic growth or improved credit ratings.

Forgiveness ancient and modern -- Pardon, excuse, and forgiveness in ancient philosophy : the standpoint of perfection -- Bishop Butler's seminal analysis -- Resentment -- Forgiveness -- Forgiveness at its best -- Forgiveness, revenge, and resentment -- Resentment and self-respect -- To be forgiven: changing your ways, contrition, and regret -- Forgiving: a change of heart, and seeing the offender and oneself in a new light -- The conditions of forgiveness: objections and replies -- Atonement and the payment or dismissal of a debt -- Forgiveness as a gift and unconditional forgiveness -- Praiseworthy conditional forgiveness -- Moral monsters, shared humanity, and sympathy -- Moral monsters -- Shared humanity and fallibility, compassion, and pity -- Sympathy -- The unforgivable and the unforgiven -- Forgiveness, narrative, and ideals -- Forgiveness, reconciliation, and friendship -- Imperfect forgiveness -- Ideal and non-ideal forgiveness: an inclusive or exclusive relation? -- Third party forgiveness -- Unilateral forgiveness: the dead and the unrepentant -- Forgiving the dead -- Forgiving the unrepentant -- Self-forgiveness -- For injuries to others -- For injuries to oneself -- For injuries one could not help inflicting -- Forgiveness and moral luck -- Political apology, forgiveness, and reconciliation -- Apology and forgiveness writ large: questions and distinctions -- Political apology among the one and many -- Many to many apology: test cases -- The University of Alabama and the legacy of slavery -- Apology, reparations, and the wartime internment of Japanese-Americans -- Desmond Tutu and South African churches -- King Hussein in Israel -- The United States Senate and the victims of lynching -- One to many apology: two failures -- Robert McNamara's war and mea culpa -- Richard Nixon's resignation and pardon -- Traditional rituals of reconciliation: apology, forgiveness, or pardon? -- Apology and the unforgivable -- Apology, forgiveness, and civic reconciliation -- A culture of apology and of forgiveness : risks and abuses -- Political apology, narrative, and ideals -- Truth, memory, and civic reconciliation without apology -- The Vietnam Veterans Memorial: an interpretation -- Reconciliation without apology?