This dissertation consists of two essays and studies topics on sovereign debt. The first essay analyzes, using duration models, the factors that affect the length of time a country in default is excluded from the international credit markets. It shows that disclosure of information by the debtor...

This study undertakes a quantitative investigation of the distributional and welfare consequences of a sharp reduction in inflation in a small open economy. In the first chapter, a monetary model of a small open economy with uninsured idiosyncratic earnings risk is analyzed. In this model,...

This dissertation consists of two essays in international macroeconomics. Thefirst essay shows that optimal fiscal and monetary policy is time consistent in astandard small open economy. Further, there exist many maturity structuresof public debt capable of rendering the optimal policy time...

This dissertation is the collection of three essays aimed to evaluate the empirical performance of dynamic stochastic general equilibrium (DSGE) models in explaining the behavior of macroeconomic dynamics in emerging countries. Chapter 1, which is joint work with M. Uribe and R. Pancrazzi,...

Access to private capital markets is the most salient difference between emerging market economies and other developing countries. However, in contrast to developed economies, emerging markets have had a troubled relationship with capital fows. In particular, balance of payments and debt crises...

This paper reviews Chilean stabilization policy during the 1990s andargues that, while the merits of Chilean policy should be praised, there are fourpuzzles in conventional interpretations of the Chilean experience worth studying.First, the policy of targeting indexed interest rates does not...

Emerging market financial crises are abrupt and dramatic, usually occurring after a period of high output growth, massive capital flows, and a boom in asset markets. This thesis develops an equilibrium asset pricing model with informationalfrictions in which vulnerability and the crisis itself...