In this paper we empirically explore the relationship between debt and output in a panel of 72 countries over the … predicted by a standard small open economy model by Aguiar and Gopinath (2007), where debt and output endogenously respond to … total factor productivity (TFP) shocks. First, developing countries' debt falls after a positive output shock, while the …

This paper tests the effect of sovereign debt structure on default likelihood. Sovereign debt structure is identified … likelihood of default. The results provide evidence that bilateral loans, short term debt, and bank loans increase the likelihood … of default. Results also show that foreign currency denominated debt reduces default likelihood. The study provides …

International Monetary Fund (IMF) have aimed to consistently speak with one voice vis-agrave;-vis their member governments. However …

Over the past 40 years, the International Monetary Fund (IMF) has played a central role in the sovereign debt … stage of the sovereign debt restructuring process. It also identifies a number of issues that the IMF will likely have to … restructuring process. If the COVID-19 pandemic leads to a significant wave of sovereign debt distress, this role will be closely …

an informational advantage over private lenders in the market for sovereign debt. I show that the adverse selection … country welfare. However, with lending the private information of the agency will be revealed whatever its weighting of … borrower welfare vs. private lenders' profits. Multilateral lending on concessional terms also alleviates the moral hazard …

This paper presents a theory of the maturity of international sovereign debt and derives its implications for the … external debt disciplines the policies of debtor countries but makes them vulnerable to unwarranted debt crises owing to bad … adoption of renegotiation-friendly clauses in debt contracts and the establishment of an international bankruptcy regime for …

Although the sovereign debt crisis is worldwide considered as a main disorder affecting indebted countries' economic … pathological mechanism, which doubles the debt incurred by any country that is forced to finance through a foreign loan its overall … implemented by any one country and that, by preventing the double charge of its external debt, would allow its government to …

Most models currently used to determine optimal foreign reserve holdings take the level of international debt as given …. However, given the sovereign's willingness-to-pay incentive problems, reserve accumulation may reduce sustainable debt levels …. In addition, assuming constant debt levels does not allow addressing one of the puzzles behind using reserves as a means …

challenged with worse debt dynamics and more limited access to dollar liquidity. Asia, instead, seems to have developed a much …