A note on an Umayyad carved ivory plaque kept at the Walters Art Gallery

This paper proposes an iconographical and stylistic analysis of a carved ivory plaque kept at the Walters Art Gallery in Baltimore (acc. no. 71.62). It will show that it is not a Coptic artefact featuring a Sasanian king, as assumed until now, but an Umayyad artefact which must be contextualised within a specific tradition of imagery related to the expression of the Umayyad concept of Caliphal authority

Willingness to pay and the sovereign debt contract

This paper uses a contract theory model to argue that covenants ruling debt renegotiations are important to assure the sovereign willingness to pay. The model includes the following features: first, collective action clauses, exit consents, aggregation provisions and pari passu clauses play an important role in the post default “game” of negotiations and coalitions. These covenants are represented in reduced form by the endogenous probability of refinancing a defaulted sovereign debt. Second, the model has “endogenous bad luck” because the unfavorable state of nature where default occurs depends on the level of indebtedness, which is itself an endogenous variable. Third, “vultures”, contrary to conventional wisdom, tend to improve the access of emerging economies to capital markets because they might help to rule out strategic defaults. And fourth, under special assumptions the model is able to analyze the possibility of post default discrimination between domestic and foreign bondholders.debt, default, negotiation, vultures, Shapley-values

Restructuring a Sovereign Debtor’s Contingent Liabilities

How should the contingent liabilities of a sovereign be treated in a general restructuring of the debts of that sovereign? This question has played only a minor role in past sovereign debt restructurings because the size of such contingent liabilities has in most cases been small. In recent years, however, slathering government guarantees on third party debt has become the tool of choice for many countries in their efforts to quell an incipient panic in their financial markets. Some of those sovereigns are now, or may soon be, in the position of needing to restructure their debts. Ignoring large contingent liabilities in a sovereign debt restructuring may plant a land mine on the road to debt sustainability once the restructuring closes. That said, the answers to the questions of whether and how to restructure contingent liabilities are not obvious. Is the restructurer to assume that some, all or none of those contingent liabilities will eventually wind up as direct claims against the sovereign? Even if the underlying instrument can be successfully restructured, the guarantee will typically stand as an independent obligation of the guarantor that will require separate treatment in the restructuring

Introduction

What are the strategies, modalities and aspirations of island-based, stateless nationalist and regionalist parties in the twenty-first century? Political independence is now easier to achieve, even by the smallest of territories; yet, it is not so likely to be pursued with any vigour by the world's various persisting sub-national (and mainly island) jurisdictions. Theirs is a pursuit of different expressions of sub-national autonomy, stopping short of independence. And yet, a number of independence referenda are scheduled, including one looming in Scotland in autumn 2014

Non-economic engagement and international exchange: the case of environmental treaties

We examine the role of non-economic partnerships in promoting international economic exchange. Since far-sighted countries are more willing to join costly international partnerships such as environmental treaties, environmental engagement tends to encourage international lending. Countries with such non-economic partnerships also find it easier to engage in economic exchanges since they face the possibility that debt default might also spill over to hinder their non-economic relationships. We present a theoretical model of these ideas, and then verify their empirical importance using a bilateral cross-section of data on international crossholdings of assets and environmental treaties. Our results support the notion that international environmental cooperation facilitates economic exchange.Debt

Caught Between Superpowers:Alaska’s Economic Relationship with China Amidst the New Cold War

In recent years, Alaska has developed an increasingly robust economic relationship with China. China is the largest foreign buyer of Alaskan goods and China continues to invest in Alaska and promote Alaskan tourism. Meanwhile, the U.S. federal government’s relationship with China has deteriorated over concerns that China poses a danger to U.S. national security. As the U.S. federal government continues to scrutinize Chinese investment and trade with the United States, Alaska’s economic relationship with China increasingly hangs in the balance. Alaska’s relationship with China thus joins a long history of economic ties between states and foreign nations that pose conflicts of interest for the U.S. federal government. Beginning with the ratification of the U.S. Constitution and leading up to the present, the states have staked out a role as advocates on behalf of their citizens in promoting economic ties with foreign nations. This Note argues that the anti-commandeering doctrine provides constitutional protection for Alaska’s promotion of its economic relationship with China from interference by the U.S. federal government. While the federal government may itself regulate commerce between Alaska and China, the federal government may not muzzle the Alaska state government and prevent it from promoting commerce with China. While this state of play might seem like a hollow victory for Alaska, the anti-commandeering doctrine requires the federal government to take action itself — rather than coerce Alaska to take action — and thus forces the federal government to expend greater political capital in passing a law or regulation. The anti-commandeering doctrine thus properly apportions political accountability among the state and federal governments and makes federal intervention less likely

Caught Between Superpowers:Alaska’s Economic Relationship with China Amidst the New Cold War

In recent years, Alaska has developed an increasingly robust economic relationship with China. China is the largest foreign buyer of Alaskan goods and China continues to invest in Alaska and promote Alaskan tourism. Meanwhile, the U.S. federal government’s relationship with China has deteriorated over concerns that China poses a danger to U.S. national security. As the U.S. federal government continues to scrutinize Chinese investment and trade with the United States, Alaska’s economic relationship with China increasingly hangs in the balance. Alaska’s relationship with China thus joins a long history of economic ties between states and foreign nations that pose conflicts of interest for the U.S. federal government. Beginning with the ratification of the U.S. Constitution and leading up to the present, the states have staked out a role as advocates on behalf of their citizens in promoting economic ties with foreign nations. This Note argues that the anti-commandeering doctrine provides constitutional protection for Alaska’s promotion of its economic relationship with China from interference by the U.S. federal government. While the federal government may itself regulate commerce between Alaska and China, the federal government may not muzzle the Alaska state government and prevent it from promoting commerce with China. While this state of play might seem like a hollow victory for Alaska, the anti-commandeering doctrine requires the federal government to take action itself — rather than coerce Alaska to take action — and thus forces the federal government to expend greater political capital in passing a law or regulation. The anti-commandeering doctrine thus properly apportions political accountability among the state and federal governments and makes federal intervention less likely

The Greek Crisis: Causes and Implications

This paper presents and critically discusses the origins and causes of the Greek fiscal crisis and its implications for the euro currency as well as the SEE economies. In the aftermath of the 2007-2009 financial crisis the enormous increase in sovereign debt has emerged as an important negative outcome, since public debt was dramatically increased in an effort by the US and the European governments to reduce the accumulated growth of private debt in the years preceding the recent financial turmoil. Although Greece is the country member of the eurozone that has been in the middle of this ongoing debt crisis, since November 2009 when it was made clear that its budget deficit and mainly its public debt were not sustainable, Greece’s fiscal crisis is not directly linked to the 2007 US subprime mortgage loan market crisis. As a result of this negative downturn the Greek government happily accepted a rescue plan of 110 billion euros designed and financed by the European Union and the IMF. A lengthy austerity programme and a fiscal consolidation plan have been put forward and are to be implemented in the next three years.Sovereign risk, Debt crisis, Bonds market, Expectations, Fiscal guarantees