Bulow, J. & Rogoff, K., (2015), “Why sovereigns repay debts to external creditors and why it matters”, Voxeu, 10 June.
With Greece on the edge and Argentina confronting adverse legal decisions, thinking about sovereign default is a front-burner issue. This column discusses how recent experience casts light on relative merits of the two main conceptual approaches to modelling sovereign lending and default – the reputation approach and the punishment approach.
Relevant Posts
- Giugliano, Ferdinando, (2015),“Investors eye consequences of a Greek default”, Financial Times, 20 May
- Wyplosz, Charles (2015)“The coming defaults of Greece”, 27 April.
- De Grauwe, Paul, (2015)“Are creditors pushing Greece deliberately into default?”, 28 April.