The importance of currency and maturity mismatches in the debt structure of emerging markets is an issue that can … theoretical and empirical level. We show that if (i) a significant share of the debt is denominated in foreign currency -creating … maturity mismatch. In particular, higher economic or political uncertainty tightens solvency constraints and tilts the debt …

Are lending contracts between international financial institutions (IFIs) and sovereign borrowers optimal? To address … this question this paper builds on two ideas. First, the prospect of future debt relief can make it profitable for an IFI … to continue lending even if lending contracts are currently violated. Second, some policy makers may prefer not implement …

rescue initiatives on IMF programme participation using a pooled probit model. The safety net permitting exceptional access …

composition of debt in Japan and Russia at the turn of the nineteenth century. …

determine the country's ability to continue its debt servicing in the future. If the sovereign undertakes an unsound economic … policy it will repudiate its debt with certainty; otherwise it will repudiate its debt with some positive probability. In our …'s economic policy. This essay provides a theoretical grounding for the IMF and other multilateral agencies intervention on the …

environments with and without contingent debt and IMF presence. We claim that CACs are likely to be an irrelevant dimension of debt … contracts in current sovereign debt markets because of the variety of instruments utilized by sovereigns and the implicit IMF … guarantee. Nonetheless, under a new international bankruptcy regime like that recently proposed by the IMF, CACs can increase …

The paper presents a three period model that studies the eects of IMF loans on borrowers’ and lenders’ welfare … highlighting the fact that the IMF has both de jure and de facto seniority rights over private creditors. It is shown that an IMF … IMF intervention always makes the borrower country better off. The eects on non-senior lenders depend on the size of the …

. In particular, the article reveals that debt financed government spending is a viable stabilization tool and can improve …

This paper investigates how government debt affects exchange rate behavior. In a two-country general …-equilibrium setting, it shows that the exchange rate is directly related to the effective price of public debt. Changes in the present …