Razin, Assaf. <br/><br/>
A Brazilian Debt-Crisis / 
Assaf Razin, Efraim Sadka. 
 - Cambridge, Mass.  National Bureau of Economic Research  2002. 
 - 1 online resource:  illustrations (black and white); 
 - NBER working paper series  no. w9160 .
 - Working Paper Series (National Bureau of Economic Research)  no. w9160. .
<br/><br/> September 2002. 
<br/><br/> We develop a stylised model of multiple equilibria, with country risk spreads at the focus of the analysis.  Fears that the country default on its debt triggers a reversal in the direction of inflows of international financial capital raise interest-rate spreads and thus the cost of servicing the public debt.  The analytical framework is standard: creditors observe the output of borrowing only at a cost. 
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