Author/Editor: Francisco Roch, Harald Uhlig.

Release Date:July, 2016

Motivated by the recent European debt crisis, this paper investigates the scope for a bailout guarantee in a sovereign debt crisis. Defaults may arise from negative income shocks, more...

Author/Editor: Juan Carlos Hatchondo, Leonardo Martinez, Francisco Roch.

Release Date:January, 2012

This paper finds optimal fiscal rule parameter values and measures the effects of imposing fiscal rules using a default model calibrated to an economy that in the absence of a fiscal rule pays a more...