Library Header Image
LSE Research Online LSE Library Services

A theory of sovereign debt roll-over crisis

Hattori, Masazumi (2004) A theory of sovereign debt roll-over crisis. Financial Markets Group Discussion Papers (488). Financial Markets Group, The London School of Economics and Political Science, London, UK.

PDF - Published Version
Download (234kB) | Preview


In this paper, we attempt to provide theoretical investigation to debt roll-over crisis in government bond market. By using the global game techniques, we analyse coordination problem in debt auction. The approach in this paper allows us to have insight on the relation between occurence of soverign debt roll-over crisis and the fundamentals of economy which is not clearly explained in preceding works. This paper also makes it clear how the amount of debt for refinancing affects occurrence of soverign debt roll-over crisis. Inplications to policymakers are that they should pay attention to possible serious consequence of debt-bunching which usually grows gradually over time. In public debt management, the government decisions today affect the situation facing the government in the future via change in redemption schedules. Although the cost of debt roll-over crisis is not easy to gauge beforehand, its possibility should be noted by policymakers.

Item Type: Monograph (Discussion Paper)
Official URL:
Additional Information: © 2004 The Author
Divisions: Financial Markets Group
Subjects: H Social Sciences > HG Finance
H Social Sciences > HB Economic Theory
JEL classification: H - Public Economics > H0 - General > H00 - General
Date Deposited: 05 Aug 2009 09:26
Last Modified: 09 Mar 2023 15:30

Actions (login required)

View Item View Item


Downloads per month over past year

View more statistics