We study sovereign debt default in small open economies and the relation linking sovereign bond spreads, business cycles, and exchange rate policy in emerging economies. In the second chapter, Sovereign Default and Debt Renegotiation, we develop a small open economy model to study sovereign...

This paper empirically analyzes how exchange rate policy affects the issuance and pricing of international bonds for developing countries. We find that countries with less flexible exchange rate regimes pay higher sovereign bond spreads and are less likely to issue bonds. Quantitatively,...