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 …
Modern theories of rational decision-making distinguish between certainty, risk and uncertainty. When the consequences of action cannot be calculated, decision-makers …
Governments that preside over a capable state apparatus can better uphold the rule of law, ensure democratic accountability, stimulate economic development, and provide good …
We consider public debt from a long-term historical perspective, showing how the purposes for which governments borrow have evolved over time. Periods when debt-to-GDP ratios …
How do domestic and global factors shape governments' capacity to issue debt in primary capital markets? Consistent with the 'democratic advantage', we identify domestic …
The financial difficulties experienced by Greece since 2009 serve as a reminder that countries (ie, sovereigns) may default on their debt. Many observers considered the financial …
In the nineteenth century, many developing countries turned to the credit houses of Europe for sovereign loans to balance their books and weather major fiscal shocks such as war …
S Chatterjee, B Eyigungor - American Economic Review, 2015 - aeaweb.org
A sovereign's inability to commit to a course of action regarding future borrowing and default behavior makes long-term debt costly (the problem of debt dilution). One mechanism to …
CW Calomiris, M Flandreau, L Laeven - Journal of Financial Intermediation, 2016 - Elsevier
This paper offers a historical perspective on the evolution of central banks as lenders of last resort (LOLR). Countries differ in the statutory powers of the LOLR, which is the outcome of a …