We propose a simple model of the international monetary system. We study the world supply
and demand for reserve assets denominated in different currencies under a variety of …

This paper extends the baseline framework used in recent quantitative studies of sovereign
default by assuming that the government can borrow using long-duration bonds. This …

This chapter is on quantitative models of sovereign debt crises in emerging economies. We
interpret debt crises broadly to cover all of the major problems a country can experience …

We measure the effects of debt dilution on sovereign default risk and study debt covenants
that could mitigate these effects. We calibrate a baseline model with endogenous debt …

This paper develops an endogenous default risk model for small open economies that
interact with risk averse international investors whose preferences exhibit decreasing …

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 extend the model used in recent quantitative studies of sovereign default, allowing
policymakers of different types to stochastically alternate in power. We show that a default …

We assess the role of financial linkages for the transmission of sovereign risk in the Euro
crisis. Building on the narrative approach by Romer and Romer (1989, 2010) and …

In this paper, we study the interplay between sovereign risk and global financial risk. We
show that a substantial portion of the comovement among sovereign spreads is accounted …

The current crisis and discussions, in the euro area in particular, show that sovereign debt
crises/defaults are no longer confined to developing economies. Following crises in many …