relatively well the volatility observed in the data. Given the monetary policy regime in place, the debt deflation channel is …

The wave of sovereign defaults in the early 1980s and the string of debt crises in the decades that followed have … fostered proposals involving policy interventions in sovereign debt restructurings. A key question about these proposals that … renegotiation in sovereign debt restructurings. Critically, the model also endogenizes the choice of debt maturity, an essential …

This paper examines the restructuring of state assets in markets deregulated by privatizations and investment … liberalizations. We show that the government has a stronger incentive to restructure than the buyer: A firm restructuring only takes … into account how much its own profit will increase. The government internalizes that restructuring increases the sales …