Economic Theory and Sovereign International Debt

by Ernst Mohr

The problem of sovereign international debt continues to preoccupy governments, bankers and economists. Most of the attempts to explain it have come from applied economics or political science. Only in recent years have economic theorists begun to address this issue and this has led to nothing less than a complete reformation of the theory of debt. What emerged may be called the new theory of sovereign debt. The current available literature tends to concentrate on a single, or at best, a few markets, notably credit markets. Also their approach is often too mathematical to reach beyond a specialist audience. Economic Theory and Sovereign International Debt synthesizes the existing theoretical literature, presents a single, unified framework and extends it in a general equilibrium analysis of sovereign international debt. Mathematical analysis has been kept to a minimum. Economic Theory and Sovereign International Debt will serve as a guide through the theory for graduate students in economic theory, researchers and applied economics.

231 pages, Paperback

First published September 1, 1991