Achury, Carolina; Koulovatianos, Christos; Tsoukalas, John - Centre for Finance, Credit and Macroeconomics (CFCM), …
We build a tractable stylized model of external sovereign debt and endogenous international interest rates. In corrupt economies with rent-seeking groups stealing public resources, a politico-economic equilibrium is characterized by permanent Öscal impatience which leads to excessive issuing of...