An integrated approach to the economics of sovereign default Fiscal crises and sovereign
default repeatedly threaten the stability and growth of economies around the world. Mark …

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 …

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 …

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 …

Using a dual representation, we show that the Markov equilibria of the one-period-bond
Eaton and Gersovitz (1981) incomplete markets sovereign debt model can be represented …

This paper studies the circular relationship between sovereign credit risk, government fiscal
and debt policy, and output. I consider a sovereign default model with fiscal policy and …

We build a dynamic model where the economy is vulnerable to belief-driven slow-moving
debt crises at intermediate debt levels, and rollover crises at both low and high debt levels …

This paper analyzes the interaction between government default decisions and labor market
outcomes in an environment with persistent unemployment, endogenous wages and …

A model of long-term sovereign debt with a fiscal rule and endogenous default is explored in
which debt maturity governs the number of risky steady states. Generally, there is a good …

This paper assesses the sovereign debt management of emerging economies in terms of
constrained Pareto efficiency. I derive a market economy in which a sovereign borrower …