Deadly embrace: Sovereign and financial balance sheets doom loops
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 …
feedback loops between sovereign and banking insolvency. This article provides a theory of …
International reserves and rollover risk
We study the optimal accumulation of international reserves in a quantitative model of
sovereign default with long-term debt and a risk-free asset. Kee** higher levels of …
sovereign default with long-term debt and a risk-free asset. Kee** higher levels of …
Enough potential repudiation: economic and legal aspects of sovereign debt in the pandemic era
A Gelpern, U Panizza - Annual Review of Economics, 2022 - annualreviews.org
This article reviews recent economic and legal literature on sovereign debt in light of the
COVID-19 shock. Most of the core theoretical contributions across the two disciplines hinge …
COVID-19 shock. Most of the core theoretical contributions across the two disciplines hinge …
Sovereign debt
In this chapter, we use a benchmark limited-commitment model to explore key issues in the
economics of sovereign debt. After highlighting conceptual issues that distinguish sovereign …
economics of sovereign debt. After highlighting conceptual issues that distinguish sovereign …
Self-fulfilling debt crises: A quantitative analysis
This paper investigates the role of self-fulfilling expectations in sovereign bond markets. We
consider a model of sovereign borrowing featuring endogenous debt maturity, risk-averse …
consider a model of sovereign borrowing featuring endogenous debt maturity, risk-averse …
Take the short route: Equilibrium default and debt maturity
We study the interactions between sovereign debt default and maturity choice in a setting
with limited commitment for repayment as well as future debt issuances. Our main finding is …
with limited commitment for repayment as well as future debt issuances. Our main finding is …
Sovereign debt: a review
M Aguiar, M Amador - 2013 - nber.org
In this chapter, we use a benchmark limited-commitment model to explore key issues in the
economics of sovereign debt. After highlighting conceptual issues that distinguish sovereign …
economics of sovereign debt. After highlighting conceptual issues that distinguish sovereign …
Dynamic debt maturity
A firm chooses its debt maturity structure and default timing dynamically, both without
commitment. Via the fraction of newly issued short-term bonds, equity holders control the …
commitment. Via the fraction of newly issued short-term bonds, equity holders control the …
Political economy of sovereign debt: A theory of cycles of populism and austerity
We study optimal fiscal and redistributive policies in an open economy without commitment.
Due to its redistributive motives, the government's incentive to default on its external debt is …
Due to its redistributive motives, the government's incentive to default on its external debt is …
[HTML][HTML] On a lender of last resort with a central bank and a stability fund
We explore the complementarity between a central bank and a financial stability Fund in
stabilizing sovereign debt markets. The central bank pursuing its mandate can intervene …
stabilizing sovereign debt markets. The central bank pursuing its mandate can intervene …