The sovereign debt restructuring operation in Jamaica undertaken in early-2010 was a unique
experiment that perhaps offered less by way of upside, if compared to the conventional …

This paper shows that the optimal sovereign lending contract is state-contingent when a
government can default. It provides a theoretical basis for the specification of optimal state-…

This paper evaluates policy alternatives to achieve permanent fiscal consolidation in Hungary,
based on a general equilibrium calibration. The main finding is that the composition of the …

This paper proposes a fiscal policy framework we call Public Debt Targeting. The framework
seeks to smooth primary spending over the business cycle while remaining consistent with …

This paper explores inflation dynamics and monetary policy in Bolivia. Bolivia’s monetary
policy framework has been effective in stabilizing inflation in recent times. This has been a …

This paper applies network analysis to assess the extent of systemic vulnerabilities in the
ECCU banking system. It includes two sets of illustrative stress tests. First, solvency and …

This paper quantifies the savings obtained from risk pooling with a Regional Stabilization
Fund (RSF) for the Eastern Caribbean Currency Union. A Monte Carlo experiment is used to …

This paper applies network analysis to assess the extent of systemic vulnerabilities in the
ECCU banking system. It includes two sets of illustrative stress tests. First, solvency and …

How has Latin America coped with external shocks and economic vulnerabilities in the
aftermath of the global financial crisis? Managing Economic Volatility in Latin America looks at …

… Insurance and state-contingent debt instruments reduce default risks for investors and imply
net financing for debtors when facing large shocks (see Guerson 2021 for a literature review …