of f iscal policy? In this paper, we develop indicators of f iscal credibility that quantify the degree to which policy … good policy track record, contribute to magnifying this effect, thereby improving fiscal credibility. Conversely, empirical … analysis suggests that markets reward credibility with more favorable sovereign financing conditions …

funding costs and raised their holdings of domestic government debt. The model is quantified using Portuguese data and …

We study a model of equilibrium sovereign default in which the government issues cocos (contingent convertible bonds …) that stipulate a suspension of debt payments when the government faces liquidity shocks in the form of an increase of the … risk more attractive for the government. In contrast, cocos that stipulate debt forgiveness when the government faces the …