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 …

What is the optimal fiscal policy response to a recession when the government is subject to
sovereign risk? We study this question in a model of endogenous sovereign default with …

We study fiscal rules using a sovereign default model. A debt-brake (spread-brake) rule
imposes a ceiling on the fiscal deficit when the sovereign debt (spread) is above a threshold …

Surges in public debt in many countries since the COVID-19 pandemic have rekindled
interest in fiscal consolidations, which often entail difficult policy choices in the face of …

This chapter starts by summarizing some of the unique characteristics of sovereign
borrowing, and then briefly describes the main institutional features of the sovereign debt …

What is the optimal fiscal policy response to a recession when the government is subject to
sovereign risk? We study this question in a model of endogenous sovereign default with …

We study optimal bailout policies in the presence of banking and sovereign crises. First, we
use European data to document that asset guarantees are the most prevalent way in which …

We study gains from introducing common numerical fiscal rules in a “Union” of model
economies facing sovereign default risk. We show that among economies in the Union …

We study a model of equilibrium sovereign default in which the government issues cocos
(contingent convertible bonds) that stipulate a suspension of debt payments when the …

We study how debt limits can be expansionary in economies facing sovereign risk. We
develop a sovereign debt model with capital accumulation, long-term debt, and fiscal rules …