Aizenman, Joshua; Kletzer, Kenneth M.; Pinto, Brian - In: Economic Journal 115 (2005) 503, pp. 343-367
This paper argues that the frequent failure of the debt swaps follows from fundamental forces driven by the market's assessment of the scarcity of fiscal revenue relative to the demand for fiscal outlays. As a country approaches the range of partial default, swaps may not provide the expected...