{"id":4214,"date":"2012-07-17T17:34:54","date_gmt":"2012-07-17T15:34:54","guid":{"rendered":"http:\/\/www.poleconomix.gr\/portal\/?p=4214"},"modified":"2012-07-19T22:34:34","modified_gmt":"2012-07-19T20:34:34","slug":"a-simple-model-of-multiple-equilibria-and-default","status":"publish","type":"post","link":"https:\/\/www.poleconomix.gr\/portal\/a-simple-model-of-multiple-equilibria-and-default\/","title":{"rendered":"A simple model of multiple equilibria and default"},"content":{"rendered":"<p><a href=\"http:\/\/www.ceps.be\/author\/daniel-gros\" target=\"_blank\">Gros, Daniel<\/a>.<\/p>\n<p>This Working Document by Daniel Gros presents a simple model that incorporates two types of sovereign default cost: first, a lump-sum cost due to the fact that the country does not service its debt fully and is recognised as being in default status, by ratings agencies, for example. Second, a cost that increases with the size of the losses (or haircut) imposed on creditors whose resistance to a haircut increases with the proportional loss inflicted upon them.<\/p>\n<p>One immediate implication of the model is that under some circumstances the creditors have a (collective) interest to forgive some debt in order to induce the country not to default.<\/p>\n<p><strong>\u03a0\u03b7\u03b3\u03ae: <\/strong>CEPS<\/p>\n<p><a href=\"http:\/\/www.ceps.be\/book\/simple-model-multiple-equilibria-and-default\" target=\"_blank\">\u03c0\u03bb\u03ae\u03c1\u03b5\u03c2 \u03ba\u03b5\u03af\u03bc\u03b5\u03bd\u03bf<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Gros, Daniel. This Working Document by Daniel Gros presents a simple model that incorporates two types of sovereign default cost: first, a lump-sum cost due to the fact that the country does not service its debt fully and is recognised as being in default status, by ratings agencies, for example. Second, a cost that increases [&hellip;]<\/p>\n","protected":false},"author":4,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[18,19,34],"tags":[28,25],"class_list":["post-4214","post","type-post","status-publish","format-standard","hentry","category-18","category-19","category-34","tag-28","tag-25"],"_links":{"self":[{"href":"https:\/\/www.poleconomix.gr\/portal\/wp-json\/wp\/v2\/posts\/4214","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.poleconomix.gr\/portal\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.poleconomix.gr\/portal\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.poleconomix.gr\/portal\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/www.poleconomix.gr\/portal\/wp-json\/wp\/v2\/comments?post=4214"}],"version-history":[{"count":2,"href":"https:\/\/www.poleconomix.gr\/portal\/wp-json\/wp\/v2\/posts\/4214\/revisions"}],"predecessor-version":[{"id":4235,"href":"https:\/\/www.poleconomix.gr\/portal\/wp-json\/wp\/v2\/posts\/4214\/revisions\/4235"}],"wp:attachment":[{"href":"https:\/\/www.poleconomix.gr\/portal\/wp-json\/wp\/v2\/media?parent=4214"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.poleconomix.gr\/portal\/wp-json\/wp\/v2\/categories?post=4214"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.poleconomix.gr\/portal\/wp-json\/wp\/v2\/tags?post=4214"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}