activity, debt-to-gdp ratio, default costs). Our model embeds a 'Southern view' of the crisis (transfers did not help) and a … bailout was to prevent an exit from the eurozone and possible contagion. Bailouts to avoid sovereign default were …

This paper studies the relationship between sovereign debt default and annual GDP growth taking into account the depth … default episodes in 117 countries over the period 1975-2013, we find that defaults are correlated with contraction of short …-term output growth. Most importantly, controlling for the severity of the default, we are able to detect a more lasting and …

A model with two essential elements, sovereign default and distortionary fiscal and monetary policies, explains the … interaction between sovereign debt, default risk and inflation in emerging countries. We derive conditions under which monetary …

to cover all of the major problems a country can experience while trying to issue new debt, including default, sharp … factors and observed global factors. Our findings motivate quantitative models of debt and default with the following features …/borrowing decision, (iv) multiperiod debt, (v) a default penalty that includes both a reputation loss and a physical output loss, and (vi …

, due to a changed perception in the country’s growth prospects, to an increase in the risk of domestic default, or to a …

Argentina's default in 2002. In this paper, we develop a quantitative model of debt and default in a small open economy. We use … match these facts within the framework of an otherwise standard business-cycle model with endogenous default relies on the …

address this challenge by evaluating policy proposals in a quantitative sovereign default model that incorporates two … essential features of debt: maturity choice and debt renegotiation in default. We find, first, that a rule that tilts the …, lowering the probability of a sovereign default by 25 percent. Second, issuing GDP-indexed bonds exclusively during …

about default risk before trading in primary and secondary markets. If primary markets are structured as multi … result, shocks to default risk in one country may trigger crisis episodes with widespread information acquisition, sharp …