Persistent Gaps, Volatility Types, and Default Traps /

We show that cross-country differences in the underlying volatility and persistence of macroeconomic shocks help explain two historical regularities in sovereign borrowing: the existence of "vicious" circles of borrowing-and-default ("default traps"), as well as the fact that rec...

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Bibliographic Details
Main Author: Fostel, Ana
Other Authors: Catao, Luis, Kapur, Sandeep
Format: Journal
Language:English
Published: Washington, D.C. : International Monetary Fund, 2007.
Series:IMF Working Papers; Working Paper ; No. 2007/148
Online Access:Full text available on IMF