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This paper examines fiscal policy without commitment and the effects of conditional bailout loans. The government … public debt never decreases in the long-run when bailout loans are available …
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This paper focuses on the debt recovery channel linking the dynamics of public debt to partial sovereign defaults. We build a simple model which incorporates sovereign default and a debt recovery rule. It depends on a parameter that allows for partial debt recovery. We show that the maximum...
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This paper argues that the key issue for defining and solving the Eurozone's (EZ) difficulties lies in readjusting the … essence of today's crisis we analyze to what extent a troubled periphery EZ member can negotiate a bailout from the center due …
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