Domestic Policies and Sovereign Default
该模型结合主权违约与扭曲性财政货币政策，解释新兴国家主权债务、违约风险与通胀的互动，并推导出货币政策积极支持财政的条件，模拟结果与新兴经济体数据一致。
A model with two essential elements—sovereign default and distortionary fiscal and monetary policies—explains the interaction between sovereign debt, default risk, and inflation in emerging countries. We derive conditions under which monetary policy is actively used to support fiscal policy and characterize the intertemporal trade-offs that determine the choice of debt. We show that in response to adverse shocks to the terms of trade or productivity, governments reduce debt and deficits and increase inflation and currency depreciation rates, matching the patterns observed in the data for emerging economies.