In this article, we review the empirical literature about sovereign debt and default. As we
survey the work of economists, historians, and political scientists, we also emphasize …

The Eurozone's present state of crisis originated from decisions made at its creation. The
decision to create a monetary union was motivated by political objectives and completely …

This paper uses an instrumental variable approach to study whether public debt has a
causal effect on economic growth in a sample of OECD countries. The results are consistent …

We test the hypothesis that the government bond markets in the Eurozone are more fragile
and more susceptible to self-fulfilling liquidity crises than in stand-alone countries. We find …

The literature on the benefits and costs of financial globalization for develo** countries
has exploded in recent years, but along many disparate channels with a variety of …

Based on a sample of 56 countries, we show that fiscal policy in the G7 countries appears to
be acyclical while fiscal policy in develo** countries is procyclical (ie, fiscal policy is …

What are the design failures of the Eurozone? This is a central question I analyze in this
paper2. First there is the endogenous dynamics of booms and busts that are endemic in …

When entering a monetary union, member countries change the nature of their sovereign
debt in a fundamental way, ie they cease to have control over the currency in which their …

Recent years have seen the development of a large literature on balance sheet factors in
financial crises. 1 The balance sheet approach focuses on the impact of disturbances on the …

The rapid growth of international reserves, a development concentrated in the emerging
markets, remains a puzzle. In this paper, we suggest that a model based on financial stability …