Gu, Grace Weishi - Volkswirtschaftliche Fakultät, … - 2015
This paper explores the impacts of sovereign defaults on trade and income through a real exchange rate channel, in a … countercyclical trade balances, procyclical trade flows, and countercyclical bond spreads with a data-consistent average. Second …, following a sovereign default, the model endogenously delivers sharp real exchange rate deterioration, output drops, trade …