Fed: Avoiding Sovereign Default Contagion - A Normative Analysis
July 04, 2020
July 04, 2020
WASHINGTON, July 4 -- The Federal Reserve issued the following white paper by Sergio de Ferra, assistant professor of economics at Stockholm University, and economist Enrico Mallucci entitled "Avoiding Sovereign Default Contagion: A Normative Analysis":
Abstract:
Should debtor countries support each other during sovereign debt crises? We answer this question through the lens of a two-country sovereign-default model that we calibrate to the euro-area periphery. . . .
Abstract:
Should debtor countries support each other during sovereign debt crises? We answer this question through the lens of a two-country sovereign-default model that we calibrate to the euro-area periphery. . . .