GDP-linked Bonds and Sovereign Default

  • David Barr
  • Oliver Bush
  • Alex Pienkowski
Chapter
Part of the International Economic Association Series book series (IEA)

Abstract

In this paper we explore the ways in which GDP-linked bonds can stabilize sovereign debt dynamics and reduce the probability of default. GDP-linked bonds provide cash payments that vary positively with the level of GDP, thereby helping to stabilize the debt-to-GDP ratio.

Keywords

Interest Rate Total Factor Productivity Relative Risk Aversion Credit Spread Sovereign Debt 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.
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Copyright information

© International Economic Association 2014

Authors and Affiliations

  • David Barr
  • Oliver Bush
  • Alex Pienkowski

There are no affiliations available

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