Neut, Alejandro; Velasco, Andrés - 2021
outstanding debt via inflation/devaluation). But sometimes governments default not because they want to, but because they cannot … avoid it: adverse shocks leave them no option. We build a model in which default/devaluation can occur deliberately (for … strategic reasons) or unavoidably. If such unavoidable fiscal crises a) have pecuniary costs and b) occur with possible …