Williamson Growth-Linked Securities

1. Auflage 2017
ISBN: 978-3-319-68333-1
Verlag: Springer Nature Switzerland
Format: PDF
Kopierschutz: 1 - PDF Watermark

E-Book, Englisch, 138 Seiten

Reihe: Progress in Mathematics

This book provides a detailed and comprehensive synthesis of the literature on growth-linked securities, which are an equity-like method of financing for sovereigns. Based on an idea introduced by Shiller (1993), these securities enjoy growing intellectual support. Momentum in favour of them in policy circles has increased since the global financial crisis of 2007-9 and the subsequent debt crisis in Europe in 2010. This book covers many issues on the topic. After surveying the history of the idea and past experiences of countries that issued growth-linked warrants, chapters examine the pros and cons of this financial instrument from the point of view of issuers and investors. The book also discusses technical issues preventing the broad issuance of growth-linked securities and provides solutions to foster their acceptance by market participants. 

John Williamson was a senior fellow at the Peterson Institute for International Economics, US, from 1981 to 2012. He was project director for the UN High-Level Panel on Financing for Development (the Zedillo Report) in 2001 and on leave as chief economist for South Asia at the World Bank during 1996-99. He has taught as an economics professor at several universities, including Pontif?cia Universidade Católica do Rio de Janeiro, University of Warwick, Massachusetts Institute of Technology, University of York, and Princeton University. John was also adviser to the International Monetary Fund (1972-74); and economic consultant to the UK Treasury (1968-70).

Autoren/Hrsg.

Williamson, John

Inhaltsverzeichnis

1;Preface to Professor John Williamson’s Book GDP-Linked Securities;5
2;Contents;10
3;List of Tables;12
4;Chapter 1: Introduction;13
4.1;Reference;16
5;Chapter 2: History and Precedents;17
5.1;2.1 Intellectual History of the Idea;20
5.2;2.2 History of the Use of GDP-Linked Securities;22
5.3;References;27
6;Chapter 3: The Variants of GDP-Linked Securities;29
6.1;3.1 The Variants;30
6.2;3.2 Differences Between the Variants;32
6.3;3.3 An Account of the Bank of England Conference;33
6.4;3.4 Critique of the Workshop;55
6.5;3.5 Other Design Features;57
6.5.1;3.5.1 Denomination;57
6.5.2;3.5.2 Pari Passu Clauses;57
6.5.3;3.5.3 Debt Reconstruction;58
6.5.4;3.5.4 CACs;58
6.5.5;3.5.5 Governing Law;58
6.6;References;59
7;Chapter 4: The Benefits of GDP-Linked Securities;60
7.1;4.1 Advantages to Potential Borrowers;61
7.1.1;4.1.1 Shift of Risk to Lenders;61
7.1.2;4.1.2 Reduction in Danger of Default;62
7.1.3;4.1.3 Anti-cyclical Impact;65
7.1.4;4.1.4 Fiscal Space;66
7.1.5;4.1.5 For Members of a Monetary Union;66
7.1.6;4.1.6 Aid in Debt Reconstruction;67
7.2;4.2 Advantages to Potential Lenders;67
7.2.1;4.2.1 Creation of Instrument Linked to National Growth;68
7.2.2;4.2.2 Relationship to Sharia;68
7.2.3;4.2.3 Combination of Attributes;68
7.3;4.3 Concluding Comments;72
7.4;Annex;72
7.5;References;74
8;Chapter 5: The Costs of GDP-Linked Securities;75
8.1;5.1 Costs to Borrowers;76
8.2;5.2 Costs to the Lender;77
8.3;5.3 The Question of Moral Hazard;78
8.4;5.4 Concluding Comments;79
8.5;References;80
9;Chapter 6: Topics in the Demand for GDP-Linked Securities;81
9.1;References;86
10;Chapter 7: Topics in the Supply of GDP-Linked Securities;87
10.1;7.1 Sovereign Borrowing;88
10.2;7.2 The Advantages for Members of a Monetary Union;92
10.3;7.3 A Term Sheet for BM;93
10.4;7.4 Concluding Remarks;101
10.5;Reference;102
11;Chapter 8: GDP Revisions;103
11.1;8.1 Routine Adjustments;104
11.2;8.2 Manipulation;107
11.3;8.3 Structural Changes;108
11.4;8.4 Concluding Remarks;117
11.5;References;118
12;Chapter 9: Would BM Really Be Anti-cyclical?;119
12.1;References;122
13;Chapter 10: Selecting the Best Form;123
13.1;10.1 DS;124
13.2;10.2 BM Versus RS;124
13.3;10.3 Selection;126
14;Chapter 11: The Disadvantages of Financial Innovation;127
14.1;References;131
15;Chapter 12: Concluding Remarks;132
15.1;Reference;135
16;Index;136