Johri, Alok; Khan, Shahed; Sosa‐Padilla, César - 2022
Empirical studies suggest that fluctuations in the level and volatility of the world interest rate (as measured by the … for the world interest rate (with both level and volatility shocks) into a model of sovereign default calibrated to a … panel of emerging economies. Time variation in the world interest rate interacts with default incentives in the model and …