Claessens, StijnKlingebiel, DanielaSchmukler, Sergio L.2014-05-142014-05-142003-03https://hdl.handle.net/10986/18316The development of government bond markets and, in particular, their currency composition have recently received much interest, partly because of their relation with financial crises. The authors study the determinants of the size and currency composition of government bond markets for a panel of industrial and developing countries. They find that countries with larger economies, greater domestic investor bases, and more flexible exchange rate regimes have larger domestic currency bond markets, while smaller economies rely more on foreign currency bonds. Better institutional frameworks and macroeconomic fundamentals enhance both domestic currency bond markets and increase countries' ability to issue foreign currency bonds, while they raise the share of foreign exchange bonds.en-USCC BY 3.0 IGOGOVERNMENT BONDSCURRENCY PARITYFINANCIAL CRISESMARKET DOWNTURNSDOMESTIC INVESTMENTEXCHANGE RATE STABILITYCURRENCY CONVERTIBILITYFOREIGN CURRENCYINSTITUTIONAL FRAMEWORKMACROECONOMIC CORRELATIONS ACCOUNTINGADBAVERAGE INFLATIONBANK FOR INTERNATIONAL SETTLEMENTSBANK OF ENGLANDBANKING SYSTEMBANKING SYSTEMSBENCHMARKINGBOND MARKETSBORROWINGCAPITAL CONTROLSCAPITAL MARKETSCENTRAL GOVERNMENTSCOMMERCIAL BANKSCORPORATE GOVERNANCEDEBTDEBT MANAGEMENTDEBT RATIOSDECISION MAKINGDEMOCRATIC INSTITUTIONSDEPOSITSDEVELOPED COUNTRIESDEVELOPING COUNTRIESDOMESTIC ECONOMYECONOMIC GROWTHECONOMIC REVIEWECONOMIES OF SCALEEMERGING ECONOMIESEMERGING MARKET ECONOMIESEMERGING MARKETSEXCHANGE RATEEXCHANGE RATE ARRANGEMENTSEXCHANGE RATE REGIMEEXCHANGE RATE REGIMESEXCHANGE RATE RISKEXCHANGE RATESEXPENDITURESEXTERNAL DEBTEXTERNALITIESFINANCIAL CRISESFINANCIAL CRISISFINANCIAL FRAGILITYFINANCIAL INTERMEDIATIONFINANCIAL MARKETSFINANCIAL STRUCTUREFINANCIAL SYSTEMFISCAL DEFICITSFISCAL POLICIESFIXED COSTSFOREIGN CURRENCYFOREIGN CURRENCY DEBTFOREIGN EXCHANGEFOREIGN EXCHANGE RESERVESFUTURE RESEARCHGDPGOVERNMENT BONDSGOVERNMENT DEBTGOVERNMENT SECURITIESGROSS DOMESTIC PRODUCTHIGH INFLATIONINFLATIONINFLATION RATEINFLATION RATESINSTITUTIONAL ARRANGEMENTSINSTITUTIONAL DEVELOPMENTINSTITUTIONAL FRAMEWORKINSURANCEINTEREST RATESINTERNATIONAL BONDSINTERNATIONAL MARKETSINTERNATIONAL RESERVESINVESTMENT OPPORTUNITIESLAWSLEGAL FRAMEWORKLIQUIDITYLOCAL CURRENCYLOCAL GOVERNMENTMACRO POLICIESMACROECONOMIC FACTORSMACROECONOMIC INSTABILITYMACROECONOMIC MANAGEMENTMACROECONOMIC POLICYMACROECONOMIC STABILITYMACROECONOMICSMARKET PRICESMONETARY MANAGEMENTMONETARY POLICIESMONETARY POLICYMORAL HAZARDPOLICY RESEARCHPOLITICAL ECONOMYPRIVATE SECTORPUBLIC DEBTPUBLIC FINANCERISK PREMIUMSCALE EFFECTSCALE EFFECTSSECONDARY MARKETSSECURITIESSETTLEMENT SYSTEMSSHORT-TERM DEBTSOCIAL SECURITYSTRUCTURE OF GOVERNMENTTAXTAX RATESTIME SERIESTIME VALUE OF MONEYTRANSITION ECONOMIESTRANSPARENCYMACROECONOMIC CORRELATIONSACCOUNTING10.1596/1813-9450-2986