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Policies for improving Sovereign Debt Restructurings

Recent sovereign default restructurings during the COVID-19 pandemic have reignited interest in research and policy suggestions for improving these restructuring episodes. Evidence for the effectiveness of these policies has largely come from empirical analysis of past episodes, but this type of analysis makes it difficult to explicitly evaluate the economic improvements from implementing these polices. We develop and calibrate a model that allows us to analyze the effects of the proposed policies.