We assess the quantitative relevance of expectations-driven sovereign debt crises, focusing on the Southern European … countries. We find that expectations-driven debt crises are quantitatively relevant but state dependent, as they only occur …

Total public debt in most emerging markets grew before and after the pandemic with a sizable share in foreign currency …. Along this trend, interest payments increased even in the presence of active fiscal rules in some countries. How should debt … management of public debt be set under a fiscal rule? This document studies how optimal currency composition reduces the cost of …

Leading into a debt crisis, interest rate spreads on sovereign debt rise before the economy experiences a decline in … productivity. A quantitative model of news and sovereign debt default with endogenous maturity choice generates impulse responses …-term debt does not shield the country from bad news shocks, and it may even exacerbate default risk. Finally, an increase in the …

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 …