The Economics of Sovereign Debt and Default by Mark Aguiar, M... - 9780691176819

The Economics of Sovereign Debt and DefaultAuthor(s): Mark Aguiar, Manuel Amador\nFormat: Hardback\nPublisher: Princeton University Press, United States\nImprint: Princeton University Press\nISBN-13: 9780691176819, 978-0691176819\nSynopsis\nAn integrated approach to the economics of sovereign default\n\nFiscal crises and sovereign default repeatedly threaten the stability and growth of economies around the world. Mark Aguiar and Manuel Amador provide a unified and tractable theoretical framework that elucidates the key economics behind sovereign debt markets, shedding light on the frictions and inefficiencies that prevent the smooth functioning of these markets, and proposing sensible approaches to sovereign debt management.\n\nThe Economics of Sovereign Debt and Default looks at the core friction unique to sovereign debtthe lack of strong legal enforcementand goes on to examine additional frictions such as deadweight costs of default, vulnerability to runs, the incentive to dilute e.