This paper surveys the recent literature on sovereign debt and relates it to the evolution of
the legal principles underlying the sovereign debt market and the experience of the most …

This paper empirically evaluates four types of costs that may result from an international
sovereign default: reputational costs, international trade exclusion costs, costs to the …

Detailed case studies of debt defaults by Russia, Ukraine, Pakistan, Ecuador, Moldova, and
Uruguay, framed by a comprehensive discussion of the history, economic theory, legal …

This article develops a heterogeneous firm-dynamics model to jointly study firms' currency
debt composition and investment choices. In our model, foreign currency borrowing arises …

Blame the Midwest. Tender academic minds often need peace and quiet to get down to
business. We first met in the delightful town of La Crosse, Wisconsin (also known as “Mud …

While the current account of the euro area as a whole has remained almost balanced in the
past two decades, several member countries have sizeable deficits or surpluses. In this …

This study contributes to the dollarization literature by expanding its determinants to account
for different dimensions of globalization, using the widely employed KOF index of …

Emerging market governments hold mixed debt portfolios: They borrow at home and abroad
in both nominal and real terms. This paper incorporates such a mixed debt structure into a …

Many central banks whose exchange rate regimes are classified as flexible are reluctant to
let the exchange rate fluctuate. This phenomenon is known as “fear of floating”. We present …

Using a dual representation, we show that the Markov equilibria of the one-period-bond
Eaton and Gersovitz (1981) incomplete markets sovereign debt model can be represented …