TY  - JOUR
AU  - Razin,Assaf
AU  - Sadka,Efraim
TI  - A Brazilian Debt-Crisis
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 9160
PY  - 2002
Y2  - September 2002
UR  - http://www.nber.org/papers/w9160
L1  - http://www.nber.org/papers/w9160.pdf
N1  - Author contact info:
Assaf Razin
Department of Economics
Cornell University
Uris 422
Ithaca, NY 14853
Tel: 607/255-9625
Fax: 607/255-2818
E-Mail: ar256@cornell.edu

Efraim Sadka
Tel Aviv University
Eitan Berglas School of Economics
P.O.B. 39040
Ramat Aviv, Tel Aviv, 69978, ISRAEL
E-Mail: sadka@post.tau.ac.il
AB  - 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.
ER  -