February 11 at 12.00 pm - Research seminar by Dimitrios Tsomocos (University of Oxford) "Debt, Recovery Rates and the Greek Dilemma"

Venue: Shabolovka st. 26, Room 3211

On Thursday, February 11 at 12.00 pm International College of Economics and Finance will hold the Research Seminar.
Speaker: Dimitrios Tsomocos (University of Oxford) <Curriculum Vitae>
Theme: "Debt, Recovery Rates and the Greek Dilemma"
Venue: Shabolovka st. 26, Room 3211              

Abstract: We examine the dilemma facing holders of Greek debt on whether to commence new renegotiations or accept the possibility of future default on the current deal. The debate has hitherto been focused on the effect of renegotiations on Greek to fulfill its obligations but has ignored the implications to creditor nations. Here we examine a dynamic 2 country model calibrated to the Greek and German (as its creditor) economy and shows that restructuring Greek debt may be beneficial for both creditors and debtors. We find the forgiving debt in arrears lowers the volatility of German consumption and dampers fluctuations following shocks while demanding higher recovery rates has the opposite effect. Finally our model provides an endogenous debt-to-assets ratio and an endogenous structure of liabilities.

Everyone interested is welcome to attend!

See the web-page of the seminar < http://icef.hse.ru/en/announcements/174263335.html >
Pass can be ordered by:
tel. +7 (495) 772-95-90 ext. 26090
e-mail: vzheleznov@hse.ru
contact: Slava Zheleznov