{"id":5515,"date":"2013-05-30T11:52:06","date_gmt":"2013-05-30T08:52:06","guid":{"rendered":"http:\/\/www.poleconomix.gr\/portal\/?p=5515"},"modified":"2013-06-02T13:25:15","modified_gmt":"2013-06-02T10:25:15","slug":"why-do-governments-default-and-why-dont-default-more-often","status":"publish","type":"post","link":"https:\/\/www.poleconomix.gr\/portal\/why-do-governments-default-and-why-dont-default-more-often\/","title":{"rendered":"Why do governments default, and why don\u2019t they default more often?"},"content":{"rendered":"<p>Buiter, Willem,\u00a0Rahbari, Ebrahim.<\/p>\n<p>This paper considers the economic and political drivers of sovereign default, focusing on countries rich enough to render sovereign default a \u2018won\u2019t pay\u2019 rather than a \u2018can\u2019t pay\u2019 phenomenon. Unlike many private contracts, sovereign debt contracts rely almost exclusively on self-enforcement rather than on third-party enforcement. Among the social costs of sovereign default are contagion and concentration risk, both within and outside the jurisdiction of the sovereign, and \u2018rule of law externalities\u2019. We consider illiquidity as a separate trigger for sovereign default and emphasize the role of lenders of last resort for the sovereign. Not only do political economy factors drive sovereign insolvency, they also influence the debt sustainability analyses performed by national and international agencies.<\/p>\n<p><strong>\u03a0\u03b7\u03b3\u03ae: <\/strong>CEPR<\/p>\n<p><a href=\"http:\/\/willembuiter.com\/buchheit.pdf\" target=\"_blank\">\u03c0\u03bb\u03ae\u03c1\u03b5\u03c2 \u03ba\u03b5\u03af\u03bc\u03b5\u03bd\u03bf<\/a><strong><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Buiter, Willem,\u00a0Rahbari, Ebrahim. This paper considers the economic and political drivers of sovereign default, focusing on countries rich enough to render sovereign default a \u2018won\u2019t pay\u2019 rather than a \u2018can\u2019t pay\u2019 phenomenon. Unlike many private contracts, sovereign debt contracts rely almost exclusively on self-enforcement rather than on third-party enforcement. Among the social costs of sovereign [&hellip;]<\/p>\n","protected":false},"author":4,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[19,34,4],"tags":[],"class_list":["post-5515","post","type-post","status-publish","format-standard","hentry","category-19","category-34","category-proposals"],"_links":{"self":[{"href":"https:\/\/www.poleconomix.gr\/portal\/wp-json\/wp\/v2\/posts\/5515","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=5515"}],"version-history":[{"count":7,"href":"https:\/\/www.poleconomix.gr\/portal\/wp-json\/wp\/v2\/posts\/5515\/revisions"}],"predecessor-version":[{"id":5529,"href":"https:\/\/www.poleconomix.gr\/portal\/wp-json\/wp\/v2\/posts\/5515\/revisions\/5529"}],"wp:attachment":[{"href":"https:\/\/www.poleconomix.gr\/portal\/wp-json\/wp\/v2\/media?parent=5515"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.poleconomix.gr\/portal\/wp-json\/wp\/v2\/categories?post=5515"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.poleconomix.gr\/portal\/wp-json\/wp\/v2\/tags?post=5515"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}