We study the relationship between default and the maturity structure of the debt portfolio of a Sovereign, under … uncertainty. The Sovereign faces a trade-off between a future costly default and a high current fiscal effort. This results into a … uncertainty about future fundamentals is then a source of default through its effect on long term interest rates and the optimal …

We study the sovereign debt duration chosen by the government in the context of a standard model of sovereign default …

confidence loss in the exchange rate regime, the relative performance of net exporters suggests that expectations of devaluation …

default on foreign-currency denominated debt. We examine how the exchange rate affects the supply of short-term debt facing … the government. We show that under a credible hard peg (currency board), default is a more likely outcome, even without an … exceptionally large short-term debt, precisely because a devaluation is not an option. In a more conventional fixed peg, it can be …

specifically, as an anticipated devaluation under an exchange rate rule leads to well-known contractionary effects, an anticipated …

generally led to currency devaluation, measured as a decline in the value of the currency in terms of the trade-weighted nominal … effective exchange rate. The effect of inflation on devaluation, however, became weaker following the financial reforms … undertaken in the early 1980s. The effect of devaluation on inflation was not significant, and this result remained robust …