Sovereign Debt Crises and Sovereign Spreads : A Review of Academic Literature

This monograph provides an extensive literature review of models of sovereign debt crisis and of the empirical literature on the determinants of sovereign spreads. Separate sections place emphasis on debt sustainability, multiple equilibria, and on models of self-fulfilling debt crises. The last chapter is dedicated to the distinction between fundamentals against market sentiment in the literature on sovereign risk. The monograph is addressed to students of economics or informed readers who intend to engage deeper in the study of sovereign debt