International Spillovers and 'Ex-ante' Efficient Bailouts
---- Acknowledgments ----
Previous versions of the paper has circulated under the title "The Politics of Sovereign Default under Financial Integration." We would like to thank Manuel Amador for discussing the paper and seminar attendees at Atlanta Fed, Bank of Canada, Claremont McKenna College, NBER IFM Summer Meeting, International Monetary Fund, Minnesota Workshop in Macroeconomic Theory, Penn State University, Philadelphia Fed, Stanford University, SED meeting in Toulouse, Stockman Conference at the University of Rochester, University of California San Diego, University of California Santa Barbara, University of Georgia, University of Houston, University of Maryland, University of Wisconsin, Yale University. The views expressed herein are those of the authors and do not necessarily reflect the views of the National Bureau of Economic Research.