We study slow moving debt crises: self-fulfilling equilibria in which high interest rates, due to
the fear of a future default, lead to a gradual but faster accumulation of debt, ultimately …

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 …

This chapter is on quantitative models of sovereign debt crises in emerging economies. We
interpret debt crises broadly to cover all of the major problems a country can experience …

In the standard model of sovereign default, as in Aguiar and Gopinath (2006) or Arellano
(2008), default is driven by fundamentals alone. There is no independent role for …

Do persistently low nominal interest rates mean that governments can safely borrow more?
To addresses this question, I extend the model of Ghosh et al.[2013] to allow for persistent …

We construct a dynamic theory of sovereign debt and structural reforms with limited
enforcement and moral hazard. A sovereign country in recession wishes to smooth …

We establish that creditor beliefs regarding future borrowing can be self-fulfilling, leading to
multiple equilibria with markedly different debt accumulation patterns. We characterize such …

We propose a model of sovereign debt in which countries vary in their level of financial
development, defined as the extent to which they can issue debt denominated in domestic …

There are large cross-sectional differences in how often US borrowers refinance mortgages.
In this paper, we develop an equilibrium mortgage pricing model with heterogeneous …

Lack of commitment at the time of auction to repayment of imminently maturing debt can
generate a run on debt and immediate default. We show that the same lack of commitment …