The European debt crisis presents a challenge to our understanding of the relationship
between government bond yields and economic fundamentals. I argue that information …

The Greek debt crisis revealed that sovereign default is not limited to emerging and
developing countries. Can we take the strategic default model, developed for emerging …

This paper proposes that an International Monetary Fund (IMF) policy shift was the reason
behind major changes in sovereign debt negotiation outcomes observed in 1989. The new …

The first chapter examines the cyclicality of debt in standard quantitative sovereign default
model, the strategic default model. The standard strategic default model has been a …

This paper proposes a model of sovereign default that features interest rate multiplicity
driven by rollover risk. Our core mechanism shows that the possibility of a rollover crisis by …