Peter DeMarzo
Biographic Data
| ID | 10330861 |
|---|---|
| NAME | Peter DeMarzo |
| GIVEN NAMES | Peter |
| FAMILY NAME | DeMarzo |
| SIGNATURE | DEMARZO P |
| VERIFIED | No |
| TOTAL WORKS | 1 |
| TOTAL CITATIONS | 1 |
| WORKS AS AUTHOR | 1 |
| WORKS AS EDITOR | 0 |
| FIRST PUBLICATION YEAR | 2023 |
| LATEST PUBLICATION YEAR | 2023 |
| H-INDEX | 1 |
Sovereign Debt Ratchets and Welfare Destruction
We study an impatient, risk-neutral government that cannot commit to a particular debt path, financed by competitive lenders. In equilibrium, debt adjusts slowly toward a debt-to-income target, exacerbating booms and busts. Strikingly, gains from trade dissipate when trading is continuous, leaving the government no better off than in financial autarky, owing to a sovereign “debt ratchet effect.” Moreover, citizens who are more patient than their …
Sovereign Debt Ratchets and Welfare Destruction
We study an impatient, risk-neutral government that cannot commit to a particular debt path, financed by competitive lenders. In equilibrium, debt adjusts slowly toward a debt-to-income target, exacerbating booms and busts. Strikingly, gains from trade dissipate when trading is continuous, leaving the government no better off than in financial autarky, owing to a sovereign “debt ratchet effect.” Moreover, citizens who are more patient than their …
Sovereign Debt Ratchets and Welfare Destruction
We study an impatient, risk-neutral government that cannot commit to a particular debt path, financed by competitive lenders. In equilibrium, debt adjusts slowly toward a debt-to-income target, exacerbating booms and busts. Strikingly, gains from trade dissipate when trading is continuous, leaving the government no better off than in financial autarky, owing to a sovereign “debt ratchet effect.” Moreover, citizens who are more patient than their …
Banking stability, regulation, efficiency (1 work) · Computer Science (1 work) · Debt (1 work) · Download (1 work) · Economics (1 work) · Finance (1 work) · Finance (1 work) · Fiscal Policies and Political Economy (1 work) · Global Financial Crisis and Policies (1 work) · Law (1 work)