Miller, Marcus; Thampanishvong, Kannika; Zhang, Lei - C.E.P.R. Discussion Papers - 2003
We examine whether Brazilian sovereign spreads of over 20% in 2002 could be due to contagion from Argentina or to domestic politics, or both. Treating unilateral debt restructuring as a policy variable gives rise to the possibility of self-fulfilling crisis, which can be triggered by contagion....