The Dynamics of Sovereign Debt Crises and Bailouts
نویسندگان
چکیده
Inspired by the European debt crisis of 2010, this paper provides a theoretical framework to analyze the dynamics of the sovereign debt ∗This is preliminary indeed. The results have not yet been checked with sufficient care, despite multiple presentations of earlier drafts. We are thankful to our discussants so far. We are particularly thankful for an insightful discussion by Fernando Broner at a CREI conference in December 2011, which led to some important changes regarding the bailout analysis in the paper. Address: Francisco Roch, Department of Economics, University of Chicago, 1126 East 59th Street, Chicago, IL 60637, U.S.A, email: [email protected]. Harald Uhlig, Department of Economics, University of Chicago, 1126 East 59th Street, Chicago, IL 60637, U.S.A, email: [email protected]. The research of Harald Uhlig has been supported by the NSF grant SES-0922550. Harald Uhlig has an ongoing consulting relationship with a Federal Reserve Bank, the Bundesbank and the ECB.
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