01966cas a2200253 a 4500 AALejournalIMF013692 230101c9999 xx r poo 0 0eng d 5.00 USD 9781475577563 1018-5941 BD-DhAAL BD-DhAAL Goretti, Manuela. Macro-Financial Implications of Corporate (De)Leveraging in the Euro Area Periphery / Manuela Goretti, Marcos Souto. Washington, D.C. : International Monetary Fund, 2013. 1 online resource (24 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 High corporate indebtedness can pose an important threat to the adjustment processes in some of the Euro area periphery countries, through its drag on investment as well as the possible migration of private sector losses to the sovereign balance sheet. This paper examines the macroeconomic implications of corporate debt overhang in recent years, confirming empirical evidence in the literature on the relationship between a firm's balance sheet position and its investment choices, especially beyond certain threshold levels. Building on an event study of past crisis experiences with corporate deleveraging, it also discusses the expected macro-financial impact of the ongoing deleveraging processes in these countries, presenting available policy options to facilitate an orderly balance-sheet adjustment and support a return to productivity and growth. Mode of access: Internet Souto, Marcos. IMF Working Papers; Working Paper ; No. 2013/154 Full text available on IMF http://elibrary.imf.org/view/journals/001/2013/154/001.2013.issue-154-en.xml IMF e-Library