As a response to economic crises triggered by COVID-19, sovereign debt standstill proposals emphasize debt payment … suspensions without haircuts on the face value of debt obligations. We quantify the effects of standstills using a standard … default model. We find that a one-year standstill generates welfare gains for the sovereign equivalent to a permanent …

productivity. A quantitative model of news and sovereign debt default with endogenous maturity choice generates impulse responses …-term debt does not shield the country from bad news shocks, and it may even exacerbate default risk. Finally, an increase in the …Leading into a debt crisis, interest rate spreads on sovereign debt rise before the economy experiences a decline in …

The model presented in this paper shows that the outcome of a leveraged buyback of sovereign debt depends on the … is shown in the empirical section. Those results do not depend on the share of country's wealth devoted to debt repayment …

course that brought Greece into today's critical situation shall be traced. This will also provide a brief historical review … as to why Greece, a small peripheral member of the Union, has proven to be the weakest link of EMU and how it arrived at … partly an inevitable consequence of the incomplete European economic governance (II). Specifically, although Greece may …