A carregar...
Publicação
Sovereign debt restructuring in theory and practice
| Nome: | Descrição: | Tamanho: | Formato: | |
|---|---|---|---|---|
| 1.33 MB | Adobe PDF |
Autores
Orientador(es)
Resumo(s)
This paper examines the economic dynamics of debt restructuring, focusing on the in centives behind defaults and the evolution of restructuring mechanisms. Using a canonical
model of sovereign default solved quantitatively, I analyze the trade-offs sovereigns face
between default and austerity. Empirical evidence from Argentina, Greece, and Zambia
restructurings illustrates the changing nature of sovereign debt negotiation. I show that
higher interest rates can lower the strategic default debt-to-GDP threshold level by as much
as 15%. I also analyze empirically the vanishing impact of sovereign-debt restructuring
on debt-to-GDP levels and real consumption, both reverting to pre-crisis levels within 5-7
years on average.
Descrição
Palavras-chave
Sovereign debt Debt restructuring Default risk Macroeconomic policy