Die klassischen, seit Jahrhunderten erprobten Instrumente zur Bewältigung von Staatsbankrotten sind Umschuldung und nachfolgende Abwertung. Charles B. Blankart und Sven Bretschneider, Humboldt-Universität zu Berlin, gehen von einem weiteren Schritt aus: Nach der Umschuldung sei ein Austritt...

Ist der Austritt Griechenlands aus der Währungsunion, verbunden mit einer externen Abwertung der neuen Währung, eine gangbare Alternative zur derzeitigen Strategie der internen Abwertung, verbunden mit öffentlichem Kapitaltransfer? Das ifo Institut vergleicht in dem Beitrag die...

We study Ireland´s inheritance of debt following its secession from the United Kingdom at the beginning of the twentieth century. Exploiting structural differences in bonds guaranteed by the UK and Irish governments, we can identify perceived uncertainty about fiscal responsibility in the...

This paper presents a model where governments need loans to finance reforms and may misuse these funds for consumption without immediately exposing this to its lenders. Such a misuse is ultimately followed by a sovereign default, therefore lenders will try to discipline governments in favor of...

How does the option to default on debt payments affect the conduct of public policy? To answer this question, this paper studies optimal monetary and fiscal policy without commitment in a model with nominal debt and endogenous sovereign default. When the government can default on its debt,...

Large fiscal financing needs, both in advanced and emerging market economies, have often been met by borrowing heavily from domestic banks. As public debt approached sustainability limits in a number of countries, however, high bank exposure to sovereign risk created a fragile inter-dependence...