Emerging markets have experienced large human and economic costs from coronavirus
disease 2019, and their tight fiscal space has limited the support extended to their citizens …

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 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 …

We document that countries partially default often and with varying intensity, resulting in
lengthy episodes and hump-shaped patterns for partial default and debt. Default episodes …

Sovereign default episodes are resolved by restructuring the debt through renegotiations
and implemented by bond swaps and resumption of debt service payments. This process …

Using a two-country model, this paper shows that the shift from foreign currency to local
currency external borrowing does not eliminate the vulnerability of EMs to foreign financial …

This paper develops a New Keynesian model with sovereign default risk (NK-Default). We
focus on the interaction between monetary policy, conducted according to an interest rate …

I investigate how natural disasters can exacerbate fiscal vulnerabilities and trigger sovereign
defaults. I extend a standard sovereign default model to include disaster risk and calibrate it …

We develop a simple model of concentrated lending where lenders have incentives for
evergreening loans by offering better terms to firms that are close to default. We detect such …

We study the extent to which the perceived cost of losing the exorbitant privilege the United
States holds in global safe asset markets sustains its public debt safety. Our findings indicate …