Federal Reserve Bank of Minneapolis: 'Default and Interest Rate Shocks: Renegotiation Matters'
December 13, 2025
December 13, 2025
MINNEAPOLIS, Minnesota, Dec. 13 (TNSLrpt) -- The Federal Reserve Bank of Minneapolis issued the following Economic Research report (No. 679) on December 8, 2025, by Victor Almeida, Carlos Esquivel, Timothy Kehoe, and Juan Pablo Nicolini entitled "Default and Interest Rate Shocks: Renegotiation Matters."
Here are excerpts:
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We develop a sovereign default model with debt renegotiation in which interest-rate shocks affect default incentives thro . . .
Here are excerpts:
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We develop a sovereign default model with debt renegotiation in which interest-rate shocks affect default incentives thro . . .