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

This paper surveys the literature on sovereign debt from the perspective of understanding
how sovereign debt differs from privately issue debt, and why sovereign debt is deemed safe …

We empirically characterize how China is internationalizing the Renminbi by staggering the
entry of different types of foreign investors into its domestic bond market and propose a …

Sovereign debt crises involve debt restructurings characterized by a mix of face value
haircuts and maturity extensions. The prevalence of maturity extensions has been hard to …

What is the role of credit scores in credit markets? We argue that it is, in part, the market's
assessment of a person's unobservable type, which here we take to be patience. We …

Expectations of transfers by central governments incentivize overborrowing by local
governments. In this paper, we ask if fiscal rules can reduce overborrowing if central …

This paper investigates the economic and social consequences of sovereign default on
external debt. We focus on the crises' impact on real per capita GDP, infant mortality, life …

We study time-consistent debt policies in a trade-off model of debt in which the firm can
freely issue new debt and repurchase existing debt. A debt policy is timeconsistent if in any …

We formulate a reputational model in which the type of government is time varying and
private information. Agents adjust their beliefs about the government's type (ie, reputation) …

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 …