Debt in emerging markets and develo** economies is at its highest level in half a century.
In about 9 in 10 emerging markets and develo** economies, debt is higher now than it …

This paper reviews empirical and theoretical work on the links between banks and their
governments (the bank-sovereign nexus). How significant is this nexus? What do we know …

We explore the causes of the credit crunch during the European sovereign debt crisis and its
impact on the corporate policies of European firms. Our results show that value impairment …

The recent unravelling of the Eurozone's financial integration raised concerns about
feedback loops between sovereign and banking insolvency. This article provides a theory of …

This paper studies the impact of investor composition on the sovereign debt market. We
construct a data set of sovereign debt holdings by foreign and domestic bank, non-bank …

In this paper, we argue that monetary policy in the form of central bank communication can
shape long-term interest rates by changing risk premia. Using high-frequency movements of …

This paper explores two mechanisms through which a sovereign default can disrupt the
domestic economy via its banking system. First, a sovereign default creates a negative …

This paper measures the output costs of sovereign risk by combining a sovereign debt
model with firm-and bank-level data. An increase in sovereign risk lowers the price of …

This study examines the impact of local government debt on stock price crash risk. The
results show that corporations located in regions with higher levels of local government debt …

Contrary to the traditional assumption of interest rates on government debt exceeding
economic growth, negative interest-growth differentials became prevalent after the global …