; ; ; "ActiveFedora::Aggregation::ListSource" . a , ; "Sovereign Default: The Role of Expectations"; ; "batchuser@example.com"; "Navarro, Gaston", "Ayres, João", "Nicolini, Juan Pablo", "Teles, Pedro"; "Federal Reserve Bank of Minneapolis"; "Interest rate spreads", "Sovereign default", "Multiple equilibria"; "F34 - International Lending and Debt Problems", "E44 - Financial Markets and the Macroeconomy"; "We study a variation of the standard model of sovereign default, as in Aguiar and Gopinath (2006) or Arellano (2008), and show that this variation is consistent with multiple interest rate equilibria. Some of those equilibria correspond to the ones identified by Calvo (1988), where default is likely because rates are high, and rates are high because default is likely. The model is used to simulate equilibrium movements in sovereign bond spreads that resemble sovereign debt crises. It is also used to discuss lending policies similar to the ones announced by the European Central Bank in 2012. "^^; "2015-04-14"; "2019-05-20T18:28:23.912355502+00:00"^^; "https://doi.org/10.21034/wp.723"; ; "https://creativecommons.org/licenses/by-nc/4.0/"; "2019-11-01T15:55:52.942782242+00:00"^^; "https://creativecommons.org/licenses/by-nc/4.0/"; "Research Paper"; "553", "780", "44", "562"; "Working paper (Federal Reserve Bank of Minneapolis. Research Department)"; "723"; "Sovereign default", "Interest rate spreads", "Multiple equilibria"; ; ; ; ; "Federal Reserve Bank of Minneapolis. Research Department"; "Published in: _Journal of Economic Theory_ (Vol. 175, May 2018, pp. 803-812), https://doi.org/10.1016/j.jet.2018.02.006."^^; ; "Publication" . ; .