This article explores a natural connection between fiscal multipliers and foreign holdings of
public debt. Although fiscal expansions can raise domestic economic activity through various …

Governments issue debt both domestically and abroad. This heterogeneity introduces the
possibility for governments to operate selective defaults that discriminate across investors. …

This paper analyzes the determinants of the volatility of the various types of capital inflows
into emerging countries. After calculating a proxy of the volatility of FDI, portfolio and bank …

We study theoretically and quantitatively how official lending regimes affect a government's
decision to raise saving as opposed to defaulting, and its implication for sovereign bond …

This paper analyzes the behavior of international capital flows by foreign and domestic agents,
dubbed gross capital flows, over the business cycle and during financial crises. We show …

In 2007, countries in the euro zone periphery were enjoying stable growth, low deficits, and
low spreads. Then the financial crisis erupted and pushed them into deep recessions, raising …

Sovereign debt restructurings do constitute a recurrent phenomenon in emerging and
developing economies. Consequently, the international community has repeatedly explored …

This paper explores the role of international reserves as a stabilizer of international capital
flows, in particular during periods of global financial stress. In contrast with previous …

This paper analyzes the joint behavior of international capital flows by foreigners and domestic
agents over the business cycle and during financial crises. We show that gross capital …

In response to the euro area crisis, policymakers took a gradual, incremental approach to
official lending, at first relying on the blueprint followed by the International Monetary Fund, …