Sovereign debt crises are difficult to solve. This paper studies the “holdout problem”, meaning the risk that creditors refuse to...

The Covid-19 pandemic is a major test for governments around the world. We study the political consequences of (mis-)managing the...

Governments often issue bonds in foreign jurisdictions, which can provide additional legal protection vis-à-vis domestic bonds. This...

Partisan conflict and policy uncertainty are frequently invoked as factors contributing to slow post-crisis recoveries. Recent events...

Among 41 populist governments of the past 50 years, there are only 9 cases in which the populists left office in a regular manner. In...

The 2008 financial crisis was devastating to the world economy. But the biggest cost of the crisis might be not economic but...

Populism at the country level is at an all-time high, with more than 25% of nations currently governed by populists. How do economies...

Germany is world champion in exporting capital (“Exportweltmeister”). No other country invests larger amounts of savings outside its...

Kiel Policy Brief No. 130: Argentina is again experiencing a severe debt and currency crisis in the middle of an election campaign...

We study central bank interventions in times of severe distress (mid-2010), using a unique bond-level dataset of ECB purchases of...

Sovereign governments owe debt to many foreign creditors and can choose which creditors to favor when making payments. This paper...

KBW 24: According to a recent German-French proposal, a financial market transaction tax (FTT) at a rate of 0.2% on the purchase of...

This paper studies external sovereign bonds as an asset class. We compile a new database of 220,000 monthly prices of foreign-currency...

Governments often issue bonds in foreign jurisdictions, which can provide additional legal protection vis-à-vis domestic bonds. This...

We study central bank interventions in times of severe distress (mid-2010), using a unique bond-level dataset of ECB purchases of...

Sovereign defaults are bad news for investors and debtor countries, in particular if a default becomes messy and protracted. Why are...

Sovereign defaults are bad news for investors and debtor countries, in particular if a default becomes messy and protracted. Why are...

We show that political booms, measured by the rise in governments' popularity, predict financial crises above and beyond other...

For centuries, defaulting governments were immune from legal action by foreign creditors. This paper shows that this is no longer the...