Add to ORKGThis paper considers the currency composition of sovereign debt in the context of risk-sharing through excusable defaults. It is shown that monetary credibility is not a sufficient condition for borrowing in domestic currency. With real exchange rate risk, debt denominated in a borrowing country’s currency can be too state-contingent to support international lending on purely reputational considerations, even when debt denominated in the lending country’s currency is viable. The model can explain the geographical pattern of bond issuance, the phenomenon of “original sin”, and the concentration of defaults on foreign-currency debt
International audienceWe develop a theory of sovereign borrowing where default penalties are not imp...
The aim of this paper is to highlight the origins of the currency and maturity mismatches in the bal...
We develop a model where a sovereign’s incentive to repay its debt depends on the identity of its cr...
We examine the question of why a government would default on debt denominated in its own currency. U...
This study examines the risk inherent to sovereign default on external debts denominated in foreign ...
This paper acknowledges the fact that some countries have to borrow in foreign currencies due to the...
Most of the international loans by commercial banks are denominated in the home currency of the lend...
This paper develops a two-sector small open economy model to analyze the effects of the currency den...
Historically, businesses in most countries have not been able to sell bonds denominated in their hom...
This paper examines the interactions between monetary regimes and public debt management. The analys...
A poor country with volatile export prices borrows in international markets. When debt is denominate...
Emerging market countries increasingly issue nominal government debt. At the same time, these countr...
Domestic and foreign debt risks, like exchange rate fluctuations and defaults, are influenced by the...
Abstract. Default on sovereign debt is a form of political risk. Issuers and creditors have responde...
Can policymakers enhance credibility by adopting hard currency pegs? Emerging-market borrowers may b...
International audienceWe develop a theory of sovereign borrowing where default penalties are not imp...
The aim of this paper is to highlight the origins of the currency and maturity mismatches in the bal...
We develop a model where a sovereign’s incentive to repay its debt depends on the identity of its cr...
We examine the question of why a government would default on debt denominated in its own currency. U...
This study examines the risk inherent to sovereign default on external debts denominated in foreign ...
This paper acknowledges the fact that some countries have to borrow in foreign currencies due to the...
Most of the international loans by commercial banks are denominated in the home currency of the lend...
This paper develops a two-sector small open economy model to analyze the effects of the currency den...
Historically, businesses in most countries have not been able to sell bonds denominated in their hom...
This paper examines the interactions between monetary regimes and public debt management. The analys...
A poor country with volatile export prices borrows in international markets. When debt is denominate...
Emerging market countries increasingly issue nominal government debt. At the same time, these countr...
Domestic and foreign debt risks, like exchange rate fluctuations and defaults, are influenced by the...
Abstract. Default on sovereign debt is a form of political risk. Issuers and creditors have responde...
Can policymakers enhance credibility by adopting hard currency pegs? Emerging-market borrowers may b...
International audienceWe develop a theory of sovereign borrowing where default penalties are not imp...
The aim of this paper is to highlight the origins of the currency and maturity mismatches in the bal...
We develop a model where a sovereign’s incentive to repay its debt depends on the identity of its cr...