In December 2001, Argentina announced it would not honour its sovereign (government-issued) debt. Many investors were left

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In December 2001, Argentina announced it would not honour its sovereign (government-issued) debt. Many investors were left holding Argentinean bonds priced at a fraction of their previous value. A few years later, Argentina announced it would pay back 25% of the face value of its debt. Comment on the eff ects of information asymmetries on government bond markets. Do you think investors are currently willing to buy bonds issued by the government of Argentina?

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The Economics Of Money Banking And Financial Markets

ISBN: 978-0134376936

6th Canadian Edition

Authors: Frederic S Mishkin ,Apostolos Serletis

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