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Constrained efficient borrowing with sovereign default risk

Hatchondo, Juan Carlos; Martinez, Leonardo; Roch, Francisco - 2020

Persistent link: https://www.econbiz.de/10012392477

Sovereign debt, government myopia, and the financial sector

Acharya, Viral V.; Rajan, Raghuram Govind - In: The review of financial studies 26 (2013) 6, pp. 1526-1560

Persistent link: https://www.econbiz.de/10009755357

Sovereign Debt, Government Myopia, and the Financial Sector

Acharya, Viral V. - 2011

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;...

Persistent link: https://www.econbiz.de/10013119044

Sovereign Debt, Government Myopia, and the Financial Sector

Acharya, Viral V. - 2013

What determines the sustainability of sovereign debt? In this paper, we develop a model where myopic governments seek electoral popularity but can nevertheless commit credibly to service external debt. They do not default when they are poor because they would lose access to debt markets and be...

Persistent link: https://www.econbiz.de/10013091966