In this paper, I develop a new identification method to solve the problem of simultaneous equations, based on heteroskedasticity of the structural shocks. I show that if the heteroskedasticity can be described as a two-regime process, then the system is just identified under relatively weak...

Bonds of the Russian Federation may soon slip into default. Once they do, the bondholders will be in a position to commence legal enforcement of the instruments and thereby add to the already considerable pressure on Mr. Putin to halt his invasion of Ukraine. Will they?

This paper explores the role of restrictions on the use of international reserves as economic sanctions. We develop a simple model of the strategic game between a sanctioning (creditor) country and a sanctioned (debtor) country. We show how the sanctioning country should impose restrictions...