Macroprudential vs. ex-post policy interventions : when domestic taxes are relevant for international lenders

Parra-Polanía, Julián Andrés; Vargas-Riaño, Carmiña Ofelia

Macroprudential vs. ex-post policy interventions : when domestic taxes are relevant for international lenders

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Borradores de Economía; No. 879

Date published

2015-04-13

Date

2015-04-13

Authors

Parra-Polanía, Julián Andrés
Vargas-Riaño, Carmiña Ofelia

Document language

spa

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Las opiniones contenidas en el presente documento son responsabilidad exclusiva de los autores y no comprometen al Banco de la República ni a su Junta Directiva.

The opinions contained in this document are the sole responsibility of the author and do not commit Banco de la República or its Board of Directors.

Abstract

We argue that international lenders take into account that taxes (or subsidies) affect borrowers’income available for debt repayments. Using an endowment-economy model, we show that by incorporating this fact into the analysis of …financial crises from th