Sovereign contingent liabilities : a perspective on default and debt crises

@inproceedings{Menzies2014SovereignCL,
  title={Sovereign contingent liabilities : a perspective on default and debt crises},
  author={John Menzies},
  year={2014}
}
Chapters 2-3: A global games approach to sovereign debt crises The first chapters present a model that investigates the risks involved when a fiscal authority attempts to roll-over a stock of debt and there is the potential for coordination failure by investors. A continuum of investors, after receiving signals about the authority's willingness to repay, decides whether to roll-over the stock of debt. If an insufficient proportion of investors participates, the authority defaults. With one… CONTINUE READING

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