This paper investigates the long-run effects of public debt and inflation on economic growth. Our contribution is both … over the 1965-2010 period, we find significant negative long-run effects of public debt and inflation on growth. Our … results indicate that, if the debt to GDP ratio is raised and this increase turns out to be permanent, then it will have …

I analyze how lack of commitment affects the maturity structure of sovereign debt. Governments balance benefits of …-term debt affects default and rollover decisions by subsequent policy makers. The equilibrium maturity structure is shaped by … revenue losses on inframarginal units of debt that reflect the price impact of these decisions. The model predicts an interior …

’s production side and on welfare, but not on its stock of foreign debt and the country specific risk premium, and large part of the … dynamics and a considerable reduction in foreign debt, allowing higher consumption in the long run and creating an … intertemporal welfare gain, even though unemployment increases strongly in the short run. A 50% haircut of foreign debt …

A windfall of natural resource revenue (or foreign aid) faces government with choices of how to manage public debt … is large relative to initial foreign debt, is it optimal to build a SWF. The optimal time profile of consumption is …

Sovereign debt restructurings can be implemented preemptively -- prior to a payment default. We code a comprehensive … quantitative sovereign debt model that incorporates preemptive and post-default renegotiations. The model improves the fit with the …