All of the chapters in this volume represent the cutting edge of thinking about sovereign debt. The contributions stem from the authors' deep expertise in the subject matter. Almost all of the contributions are based on formal academic research conducted in the last two years. Accordingly, this...

What determines the sustainability of sovereign debt? We develop a model where myopic governments seek popularity but can nevertheless commit credibly to service external debt. They do not default when debt is low because they would lose access to debt markets and be forced to reduce spending;...

This paper extends the sovereign default model described in Arellano (2008) by including both domestic and foreign debts. The government issues debt and can either inflate away its domestic debt or default on its external component. Under a discretionary policy, the existence of domestic debt...

This paper discusses the recent brief filed in the famous case NML v The Republic of Argentina which takes place before the federal tribunals of the New York, and how such filing may affect the resolution of the litigation, probably forcing Argentina to default. This paper also discusses the...