Sovereign risk after COVID-19: Don’t forget domestic debt

Posted on 30 October 2020 by Wojtek Paczos

The sharp reductions in economic output and large-scale government expenditures prompted by the COVID-19 pandemic have led to an enhanced risk of sovereign defaults, especially in emerging economies. In our latest blog post, Dr Wojtek Paczos and Dr Kirill Shakhnov argue that an output drop alone increases the risk of foreign default, while a sudden
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