01554cas a2200241 a 4500 AALejournalIMF011976 230101c9999 xx r poo 0 0eng d 5.00 USD 9781475505269 1018-5941 BD-DhAAL BD-DhAAL Adler, Gustavo. Intertwined Sovereign and Bank Solvencies in a Model of Self-Fulfilling Crisis / Gustavo Adler. Washington, D.C. : International Monetary Fund, 2012. 1 online resource (29 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students Large fiscal financing needs, both in advanced and emerging market economies, have often been met by borrowing heavily from domestic banks. As public debt approached sustainability limits in a number of countries, however, high bank exposure to sovereign risk created a fragile inter-dependence between fiscal and bank solvency. This paper presents a simple model of twin (sovereign and banking) crisis that stresses how this interdependence creates conditions conducive to a self-fulfilling crisis. Mode of access: Internet IMF Working Papers; Working Paper ; No. 2012/178 Full text available on IMF http://elibrary.imf.org/view/journals/001/2012/178/001.2012.issue-178-en.xml IMF e-Library