This chapter surveys the theory of international tax competition and coordination, which,
matching the increasing policy importance of the topic, has grown substantially over the last …

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 …

We show that eurozone bank risks during 2007–2013 can be understood as carry trade
behavior. Bank equity returns load positively on peripheral (Greece, Italy, Ireland, Portugal …

The COVID-19 pandemic provides a unique setting in which to evaluate the importance of a
country's fiscal capacity in explaining the relation between economic growth shocks and …

This paper analyzes the behavior of international capital flows by foreign and domestic
agents, dubbed gross capital flows, over the business cycle and during financial crises. We …

The Greek debt restructuring of 2012 stands out in the history of sovereign defaults. It
achieved very large debt relief–over 50% of 2012 GDP–with minimal financial disruption …

We present a model of sovereign debt in which, contrary to conventional wisdom,
government defaults are costly because they destroy the balance sheets of domestic banks …

In 2007, countries in the euro zone periphery were enjoying stable growth, low deficits, and
low spreads. Then the financial crisis erupted and pushed them into deep recessions …

This paper analyzes sovereign bondholdings by 20,000 banks in 191 countries and 20
sovereign default episodes over 1998–2012, establishing two robust facts. First, banks hold …

The question of what is a sustainable public debt is paramount in the macroeconomic
analysis of fiscal policy. This question is usually formulated as asking whether the …