This paper seeks to understand the interplay between banks, bank regulation, sovereign default risk and central bank … regulators in risky countries have an incentive to allow their banks to hold home risky bonds and risk defaults, while regulators … cheaply, effectively shifting the risk of some of the potential sovereign default losses on the common central bank …

-Bernanke period only. Focusing on this period, the “risk-management” approach is found to be responsible for monetary policy easings …

residual redenomination risk. We also find that unconventional monetary policy measures affect the pricing of sovereign risk … not only directly, but also indirectly through changes in banking risk …

The paper analyzes the dynamic effects of a total factor productivity shock and an interest rate risk premium shock in …'s production side and on welfare, but not on its stock of foreign debt and the country specific risk premium, and large part of the … adjustment happens in the short run. In contrast, a pure increase in the country specific risk premium causes substantial …

We explore the benefits of intergenerational risk-sharing through both private funded pensions and via the public debt …