Series: IMF Working Papers
Author(s): Ana Fostel , Sandeep Kapur , and Luis Catão
Publisher: INTERNATIONAL MONETARY FUND
Publication Date: 01 June 2007
Keywords: Sovereign Debt, Default, Country Spreads, Output Volatility and Persistence, bond, bonds, sovereign bond, bondholders, Sovereign Debt. Default,
We show that cross-country differences in the underlying volatility and persistence of macroeconomic shocks help explain two historical regularities in sovereign borrowing: the existence of "vicious" circles of bor...