The Economics of Sovereign Debt and Default

The Economics of Sovereign Debt and Default

Author: Mark Aguiar

Publisher: Princeton University Press

ISBN: 9780691189246

Category: Business & Economics

Page: 200

View: 305

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An integrated approach to the economics of sovereign default Fiscal crises and sovereign default repeatedly threaten the stability and growth of economies around the world. Mark Aguiar and Manuel Amador provide a unified and tractable theoretical framework that elucidates the key economics behind sovereign debt markets, shedding light on the frictions and inefficiencies that prevent the smooth functioning of these markets, and proposing sensible approaches to sovereign debt management. The Economics of Sovereign Debt and Default looks at the core friction unique to sovereign debt—the lack of strong legal enforcement—and goes on to examine additional frictions such as deadweight costs of default, vulnerability to runs, the incentive to “dilute” existing creditors, and sovereign debt’s distortion of investment and growth. The book uses the tractable framework to isolate how each additional friction affects the equilibrium outcome, and illustrates its counterpart using state-of-the-art computational modeling. The novel approach presented here contrasts the outcome of a constrained efficient allocation—one chosen to maximize the joint surplus of creditors and government—with the competitive equilibrium outcome. This allows for a clear analysis of the extent to which equilibrium prices efficiently guide the government’s debt and default decisions, and of what drives divergences with the efficient outcome. Providing an integrated approach to sovereign debt and default, this incisive and authoritative book is an ideal resource for researchers and graduate students interested in this important topic.
The Economics of Sovereign Debt and Default
Language: en
Pages: 200
Authors: Mark Aguiar, Manuel Amador
Categories: Business & Economics
Type: BOOK - Published: 2021-12-21 - Publisher: Princeton University Press

An integrated approach to the economics of sovereign default Fiscal crises and sovereign default repeatedly threaten the stability and growth of economies around the world. Mark Aguiar and Manuel Amador provide a unified and tractable theoretical framework that elucidates the key economics behind sovereign debt markets, shedding light on the
The Economics of Sovereign Debt and Default
Language: en
Pages: 200
Authors: Mark Aguiar, Manuel Amador
Categories: Business & Economics
Type: BOOK - Published: 2021-11-23 - Publisher: Princeton University Press

An integrated approach to the economics of sovereign default Fiscal crises and sovereign default repeatedly threaten the stability and growth of economies around the world. Mark Aguiar and Manuel Amador provide a unified and tractable theoretical framework that elucidates the key economics behind sovereign debt markets, shedding light on the
Sovereign Debt
Language: en
Pages: 45
Authors: Mr. Leonardo Martinez, Mr. Francisco Roch, Francisco Roldán, Mr. Jeromin Zettelmeyer
Categories: Business & Economics
Type: BOOK - Published: 2022-06-17 - Publisher: International Monetary Fund

This paper surveys the literature on sovereign debt from the perspective of understanding how sovereign debt differs from privately issue debt, and why sovereign debt is deemed safe in some countries but risky in others. The answers relate to the unique power of the sovereign. One the one hand, a
Sovereign Debt
Language: en
Pages: 449
Authors: Robert W. Kolb
Categories: Business & Economics
Type: BOOK - Published: 2011-02-25 - Publisher: John Wiley & Sons

An intelligent analysis of the dangers, opportunities, and consequences of global sovereign debt Sovereign debt is growing internationally at a terrifying rate, as nations seek to prop up their collapsing economies. One only needs to look at the sovereign risk pressures faced by Greece, Spain, and Ireland to get an
Essays in Sovereign Debt and Default
Language: en
Pages: 101
Authors: Mudra Mukherjee
Categories: Business & Economics
Type: BOOK - Published: 2015 - Publisher:

Abstract: This dissertation explores various issues and consequences related to sovereign debt and default. In particular, I investigate issues related to sovereign debt and default in the context of emerging and developing economies.