, ; ; ; "ActiveFedora::Aggregation::ListSource" . a , ; "Monetary Independence and Rollover Crises"; ; "batchuser@example.com"; "Bianchi, Javier", "Mondragon, Jorge"; "Federal Reserve Bank of Minneapolis"; "Sovereign debt crises", "Monetary unions", "Rollover risk"; "G15 - International Financial Markets", "E50 - Monetary Policy, Central Banking, and the Supply of Money and Credit: General", "F34 - International Lending and Debt Problems", "E40 - Money and Interest Rates: General"; "This paper shows that the inability to use monetary policy for macroeconomic stabilization leaves a government more vulnerable to a rollover crisis. We study a sovereign default model with self-fulfilling rollover crises, foreign currency debt, and nominal rigidities. When the government lacks monetary independence, lenders anticipate that the government would face a severe recession in the event of a liquidity crisis, and are therefore more prone to run on government bonds. In a quantitative application to the Eurozone debt crisis, we find that the lack of monetary autonomy played a central role in making Spain vulnerable to a rollover crisis. Finally, we argue that a lender of last resort can go a long way towards reducing the costs of giving up monetary independence."^^; "2021-05-26"; "2019-05-20T18:16:29.847082213+00:00"^^; ; "https://doi.org/10.21034/wp.755"; ; "https://creativecommons.org/licenses/by-nc/4.0/"; "2021-12-27T15:12:01.18923227+00:00"^^; "https://creativecommons.org/licenses/by-nc/4.0/"; "Research Paper"; "80", "533"; "Working paper (Federal Reserve Bank of Minneapolis. Research Department)"; "755"; "Monetary unions", "Sovereign debt crises", "Rollover risk"; ; ; ; ; "Federal Reserve Bank of Minneapolis. Research Department"; "Published in: _Quarterly Journal of Economics_ (Vol. 137, Iss. 1, February 2022, pp. 435-491), http://doi.org/10.1093/qje/qjab025."^^; ; "Publication" . ; ; . ; ; .