possibility of a domestic coordinated default crisis, in which domestic borrowers find it optimal to default because all other …

can nevertheless commit credibly to service external debt. They do not default when debt is low because they would lose … access to debt markets and be forced to reduce spending; they do not default as debt builds up, and net new borrowing becomes … difficult, because of the adverse consequences from default to the domestic financial sector. More myopic governments default …

of the default crisis have stressed the causal role of the depression that began with the Panic of 1837, unexpected … debts in default in 1842 were contracted after the Panic of 1837; most states did not expect canal investments to return … state borrowing and the default experience of western and southern states. Pennsylvania and Maryland defaulted because they …

country's default and inflation history. Debt intolerance is linked to the phenomenon of serial default that has plagued many …

A large literature has developed quantitative versions of the Eaton and Gersovitz (1981) model to analyze default … and foreign investors, and we derive conditions under which their sum is the relevant state variable for default …

's hidden type switches back and forth between a commitment type, which cannot default, and an optimizing type, which can … default at any time, and assume outside lenders have particular beliefs regarding how a commitment type should borrow for any …, the interest rate the country pays on its debt is a decreasing function of the amount of time since its last default, and …