Debt in Times of Crisis

Debt, private and public, and in particular excessive debt, has been debated to be one of the root causes of economic crises. At the same time, economic crises are believed to lead to an increase of debt. This book, through a range of contributors, explores certain constituents of an economy and attempts to identify their contribution to debt (public and private), especially in times of crisis; namely, bonds, tariffs, social security and non-performing loans (NPLs). Furthermore, it captures the (implicit) impact of the demography on debt through tariffs and social security and investigates the effect of quantitative easing/purchase programs and as well as crises on debt. In addition, the (cost of the) reserve that a state may want to provision for, in order to secure its economy from defaulting within a certain time horizon, is also addressed and calculated. This calculation offers an alternative valuation, or pricing, of (excess) debt (default protection).

This book aims to offer a comparative study of countries especially those with a history of excessive debt - and intends to realize whether an economic crisis can genuinely deteriorate debt, or whether the debt unsustainability is preexisting to the crisis. It will be relevant to students and researchers interested in economic policy and growth.

Questions whether a link exists between debt and crisis, and whether an economic crisis truly affects debt Provides a comprehensive exposition of the (potential) contributors to debt, especially in times of crisis Analyzes the impact of social security, tariffs and bonds to debt Proposes an alternative, actuarial approach in the pricing of debt

Auteur
Thomas Poufinas is an Assistant Professor at the Department of Economics, Democritus University of Thrace, Greece.

Contenu

Chapter 1. Debt valuation: An alternative method to avoid future default ( Thomas Poufinas and Evangelos Drimpetas).- Chapter 2. The impact of Quantitative Easing Policy on the government debt and the NPLs of the Eurozone periphery countries ( Dionysios Chionis, Fotios Mitropoulos and Antonios Sarantidis).- Chapter 3. Tariffs and Debt ( George Galanos, Thomas Poufinas and Charalampos Agiropoulos).- Chapter 4. The impact of demographics on the level of tariffs ( James Chen, Thomas Poufinas, Charalampos Agiropoulos and George Galanos).- Chapter 5. Demographics as determinants of social security ( James Chen, Thomas Poufinas, Charalampos Agiropoulos and George Galanos).- Chapter 6 Sovereign Debt and Social Security ( Thomas Poufinas, George Galanos and Charalampos Agiropoulos).- Chapter 7. Debt versus Non-Performing Loans: An investigation on the causality direction within the countries of Eurozone ( Charalampos Agiropoulos, George Galanos and Thomas Poufinas).- Chapter 8. What drives sovereign bond yields in the Eurozone? ( Nicholas Apergis, Giuseppina Chesini and Thomas Poufinas).

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