TY - BOOK ID - 11944481 TI - Intertwined sovereign and bank solvencies in a model of self-fulfilling crisis AU - Adler, Gustavo AU - International Monetary Fund. PY - 2012 VL - WP/12/178 SN - 1475558252 1475505264 1475529392 1475548419 9781475558258 9781475505269 9781475548419 9781475505269 9781475548419 9781475529395 PB - [Washington, D.C.] International Monetary Fund DB - UniCat KW - Business & Economics KW - Economic Theory KW - Financial crises. KW - Banks and banking. KW - Agricultural banks KW - Banking KW - Banking industry KW - Commercial banks KW - Depository institutions KW - Crashes, Financial KW - Crises, Financial KW - Financial crashes KW - Financial panics KW - Panics (Finance) KW - Stock exchange crashes KW - Stock market panics KW - Finance KW - Financial institutions KW - Money KW - Crises KW - Banks and banking KW - Bank loans KW - Financial crises KW - Risk KW - Debts, Public KW - Econometric models KW - E-books KW - Debts, Government KW - Government debts KW - National debts KW - Public debt KW - Public debts KW - Sovereign debt KW - Debt KW - Bonds KW - Deficit financing KW - Economics KW - Uncertainty KW - Probabilities KW - Profit KW - Risk-return relationships KW - Bank credit KW - Loans KW - Banks and Banking KW - Financial Risk Management KW - Money and Monetary Policy KW - Public Finance KW - Industries: Financial Services KW - Financial Markets and the Macroeconomy KW - Money Supply KW - Credit KW - Money Multipliers KW - Comparative or Joint Analysis of Fiscal and Monetary Policy KW - Stabilization KW - Treasury Policy KW - Banks KW - Depository Institutions KW - Micro Finance Institutions KW - Mortgages KW - Financial Crises KW - Monetary Policy, Central Banking, and the Supply of Money and Credit: General KW - Pension Funds KW - Non-bank Financial Institutions KW - Financial Instruments KW - Institutional Investors KW - Debt Management KW - Sovereign Debt KW - Economic & financial crises & disasters KW - Monetary economics KW - Public finance & taxation KW - Nonbank financial institutions KW - Domestic debt KW - Financial services industry KW - Argentina UR - https://www.unicat.be/uniCat?func=search&query=sysid:11944481 AB - Large fiscal financing needs, both in advanced and emerging market economies, have often been met by borrowing heavily from domestic banks. As public debt approached sustainability limits in a number of countries, however, high bank exposure to sovereign risk created a fragile inter-dependence between fiscal and bank solvency. This paper presents a simple model of twin (sovereign and banking) crisis that stresses how this interdependence creates conditions conducive to a self-fulfilling crisis. ER -