In this lecture, I revisit whether sovereign debt markets have delivered on their promise of
fostering growth and enhancing risk sharing in emerging and developing economies. I use …

This paper studies the losses to the citizenry when the private agents discount the future at
different rates from their government. In the presence of such a disagreement, the private …

Publisher Summary This chapter focuses on specific problems posed by sovereign debt
(that is, debt incurred by governments, typically those of developing countries) to foreign …

We develop a theory of sovereign borrowing where default penalties are not implementable.
We show that when debt is held by both domestic and foreign agents, the median voter …

We develop a political economy model of sovereign debt that shows that income inequality
leads to popular pressures on the government to use foreign debt to finance a redistribution …

This paper surveys a broad range of theoretical issues of international borrowing and
lending with a focus on the effects of sovereign immunity. The literature in credit market …

The international financial community has often preferred to repeat the past rather than study
it. Since 1974 international lending has passed through another cycle of enthusiasm …

This paper examines the welfare effects of bailouts, policies that combine third-party
subsidized loans with limits on sovereign borrowing, in economies exposed to sovereign …

We investigate markets for defaultable sovereign debt in which even though there are many
identical lenders and symmetric information (including no hidden actions), perfect …

3 Alfaro and Kanczuk (2005) show that the interest rate penalties that actually materialize
following default are not nearly enough punishment to cause countries to repay their debts …