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What Went Wrong?: The Puerto Rican Debt Crisis, The "Treasury Put," And The Failure Of Market Discipline

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  • Chirinko, Robert S.
  • Chiu, Ryan
  • Henderson, Shaina

Abstract

What went wrong? Why did seemingly rational, forward-looking bond investors continue to purchase Puerto Rican debt with only a modest risk premium? Why did financial markets fail to exercise market discipline and restrict capital flows to Puerto Rico?
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Chirinko, Robert S. & Chiu, Ryan & Henderson, Shaina, 2019. "What Went Wrong?: The Puerto Rican Debt Crisis, The "Treasury Put," And The Failure Of Market Discipline," Working Papers 281, The University of Chicago Booth School of Business, George J. Stigler Center for the Study of the Economy and the State.
    • Handle: RePEc:zbw:cbscwp:281
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    More about this item

    Keywords

    Puerto Rican Debt Crisis; Government Guarantees; Capital Misallocation; Bond Interest Rates;
    All these keywords.

    JEL classification:

    • H81 - Public Economics - - Miscellaneous Issues - - - Governmental Loans; Loan Guarantees; Credits; Grants; Bailouts
    • H74 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Borrowing
    • G18 - Financial Economics - - General Financial Markets - - - Government Policy and Regulation
    • G01 - Financial Economics - - General - - - Financial Crises

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