Viral V Acharya

Deputy Governor, Reserve Bank of India; CV Starr Professor of Economics in the Department of Finance at New York University Stern School of Business (NYU-Stern).

Sovereign Debt, Government Myopia, and the Financial Sector

Why do  governments   repay external sovereign borrowing?  Models  where countries ser vice  their external debt for fear of being excluded from capital markets for a sustained period seem ver y persuasive, yet are at odds with the fact that defaulters seem to be able to return to borrowing in international capital markets  after  a short while. With sovereign debt in …

Read More »

Related Articles