Sovereign debt crises are difficult to solve. This paper studies the “holdout problem”, meaning the risk that creditors … refuse to participate in a debt restructuring. We document a large variation in holdout rates, based on a comprehensive new … dataset of 23 bond restructurings with external creditors since 1994. We then study the determinants of holdouts and find that …

This paper is linked to two debates on fiscal policies: first, the implications of low interest-growth differentials … for debt sustainability and, second, the reform of the EU fiscal governance framework. In both debates the choice of … government debt anchor and the speed of adjustment take centre stage. The Stability and Growth Pact's debt rule appears …

The financial crisis of 2008/2009 has left European economies with a sizeable public debt stock bringing back the … determining major public debt reductions. On average, the total debt reduction per country amounted to almost 37 percentage points … of GDP. We estimate several specifications of a logistic probability model. Our findings suggest that, first, major debt …

common feature of sovereign debt markets. The legal developments have strengthened the hands of creditors and raised the cost …For centuries, defaulting governments were immune from legal action by foreign creditors. This paper shows that this is … models with creditor sanctions and suggest that sovereign debt is becoming more enforceable. We discuss how the threat of …

affected by debt growth, macroeconomic developments and political factors. In particular, we find that the run-up to EMU …

Using a pan-European dataset of 8.5 million firms, we find that firms with high debt overhang invest relatively more …, the positive impact of a marginal increase in debt on investment efficiency disappears if firm debt is already excessive … the disciplining role of debt, as well as with models highlighting the negative link between agency problems at firms and …

This paper analyses the empirical relationship between fiscal policy and the current account of the balance of payments … allowed to alter according to the government debt to GDP ratio. The results show that for countries with debt to GDP ratios up … fiscal deficit leads to a higher current account deficit. For very high debt countries this relationship however turns …

This paper investigates whether the funding behaviour of euro area debt management offices (DMOs) changed with the … economic implications of public debt management during the PSPP and its relevance for monetary policy transmission …

‐term debt over the period 1992‐2017. Debt managers increased short‐term debt issuance in response to higher interest rate …This study analyses the choice of government debt managers in the euro area between issuing short‐term or long … spreads and to rising government debt, notably in vulnerable, high‐debt countries. Thus, lower long-term rates as a result of …