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Crisis, Debt, and Default

The Effects of Time Preference, Information, and Coordination

  • Philip Ernstberger

Table of contents

  1. Front Matter
    Pages I-XIV
  2. The Dynamics of Currency Crises - Results from Intertemporal Optimization and Viscosity Solutions

    1. Front Matter
      Pages 7-7
    2. Philip Ernstberger
      Pages 9-10
    3. Philip Ernstberger
      Pages 11-12
    4. Philip Ernstberger
      Pages 13-37
    5. Philip Ernstberger
      Pages 38-42
    6. Philip Ernstberger
      Pages 43-60
  3. The Mispricing of Debt - Influences of Ratings on Coordination

    1. Front Matter
      Pages 63-63
    2. Philip Ernstberger
      Pages 65-68
    3. Philip Ernstberger
      Pages 69-82
    4. Philip Ernstberger
      Pages 83-87
    5. Philip Ernstberger
      Pages 88-88
    6. Philip Ernstberger
      Pages 89-92
  4. Probability of Default and Precision of Information

    1. Front Matter
      Pages 95-95
    2. Philip Ernstberger
      Pages 97-98
    3. Philip Ernstberger
      Pages 99-106
    4. Philip Ernstberger
      Pages 107-112
    5. Philip Ernstberger
      Pages 113-116
    6. Philip Ernstberger
      Pages 117-136
  5. Back Matter
    Pages 139-142

About this book

Introduction

Philip Ernstberger analyses in his three essays different topics of financial pathologies. Thereby, changes in fundamentals as well as information are considered as the driving force for the behavior of speculators and investors. The first essay deals with currency crises, in which the central bank, through setting the interest rate, steers the economy and defends against speculators. The second essay examines the effects of a rating and possible biases on the coordination of investors and the pricing of debt. In the third essay the author uses forecasts of default probabilities and implied market default probabilities to infer the weighing of information by investors.

Contents
• The Dynamics of Currency Crises
• The Mispricing of Debt - Influences of Ratings on Coordination
• Probability of Default and Precision of Information

Target Groups
• Teachers and students of international macroeconomics and finance as well as monetary economics
• Executives and consultants in the field of corporate credit ratings

About the Author
Dr. Philip Ernstberger is currently working as a senior consultant in the field of risk modeling, concentrating on stress testing and operational risk methodologies, as well as rating model development and validation.

Keywords

Global Games Ratings Currency Crisis Default probability Bond issue

Authors and affiliations

  • Philip Ernstberger
    • 1
  1. 1.Gutmark, Radtke & Company AGFrankfurt am MainGermany

Bibliographic information

  • DOI https://doi.org/10.1007/978-3-658-13231-6
  • Copyright Information Springer Fachmedien Wiesbaden 2016
  • Publisher Name Springer Gabler, Wiesbaden
  • eBook Packages Economics and Finance
  • Print ISBN 978-3-658-13230-9
  • Online ISBN 978-3-658-13231-6
  • Buy this book on publisher's site