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CREI - Macroeconomics

Sovereign Debt Crises: Theory, Evidence and Policy

An overview of sovereign debt crises from theoretical, empirical, and policy points of view.

10h (5 days)

€1,199

Face-to-face

English

Program date: July 6-10, 2026

Early bird deadline: April 15, 2026

Learn more

CREI - Macroeconomics

Sovereign Debt Crises: Theory, Evidence and Policy

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Who is this Course for?

CREI - Macroeconomics

Sovereign Debt Crises: Theory, Evidence and Policy

Course overview

This course provides an overview of sovereign debt crises from theoretical, empirical, and policy points of view. It covers both traditional and new theories that emphasize the interplay between international and domestic financial markets, and the relevant empirical evidence. It discusses the distinction between liquidity and solvency crises and the appropriate policy responses. The last part of the course is devoted to an analysis of the European crisis.

The course is aimed at students, researchers, and practitioners. It provides a formal analysis of some of the main theoretical models and empirical studies in the sovereign debt academic literature. At the same time, the presentation is accessible as it emphasizes conceptual understanding and policy implications.

Faculty

Who is this course for?

This program would be useful for:

Students, researchers, and practitioners aiming to understand and get up to date with the most recent developments in the area

Learning outcomes

By the end of the course, participants will have:

Understood sovereign debt crises
Analyzed traditional and new theories of sovereign debt
Evaluated empirical evidence
Explored policy responses to debt crises

Key topics for Sovereign Debt Crises Theory, Evidence and Policy course

Here is an overview of what will be covered in the course.

Course Outline

What are the costs of sovereign default? Reputation and sanctions
Market structure and defaults: Secondary markets and collateral damage
Rollover crises: Lender of last resort and moral hazard
Solvency crises: Debt overhang, buybacks and restructuring
Lessons from Europe

List of References

See below a list of texts and articles that may help you prepare for this course.

Texts and Articles

Arellano, C. (2008), “Default risk and income fluctuations in emerging economies,” American Economic Review.
Arellano, C. and A. Ramanarayanan (2012), “Default and the maturity structure in sovereign bonds,” Journal of Political Economy.
Broner, F., A. Erce, A. Martin, and J. Ventura (2014), “Sovereign debt markets in turbulent times: Creditor discrimination and crowding-out effects,” Journal of Monetary Economics.
Broner, F., G. Lorenzoni and S. Schmukler (2013), “Why do emerging economies borrow short term?” Journal of the European Economic Association.
Broner, F., A. Martin and J. Ventura (2010), “Sovereign risk and secondary markets,” American Economic Review.
Broner, F. and J. Ventura (2016), “Rethinking the effects of financial globalization,” Quarterly Journal of Economics.
Cole, H. and T. Kehoe (2000), “Self-fulfilling debt crises,” Review of Economic Studies
Cruces, J. and C. Trebesch (2013), “Sovereign defaults: The price of haircuts,” AEJ: Macroeconomics.
Easterly W. and S. Fischer (1990), “The economics of the government budget constraint,” World Bank Research Observer
Gelos, R. Sahay and G. Sandleris (2011), “Sovereign borrowing by developing countries: What determines market access?” Journal of International Economics.
Gennaioli, N., A. Martin and S. Rossi (2014), “Sovereign default, domestic banks, and financial institutions,” Journal of Finance.
Jeanne, O. (2009), “Debt maturity and the international financial architecture,” American Economic Review
Kose, M., E. Prasad, K. Rogoff and S. Wei (2009), “Financial globalization: A reappraisal,” IMF Staff Papers.
Krugman, P. (1992), “Reducing developing country debt,” in Currencies and Crises
Martin, A. and F. Taddei (2013), “International capital flows and credit market imperfections: A tale of two frictions,” Journal of International Economics
Obstfeld, M. and K. Rogoff (1996), Foundations of International Macroeconomics, Ch. 6.1.
Obstfeld, M. and K. Rogoff (1996), Foundations of International Macroeconomics, Ch. 6.2.
Reinhart, C., V. Reinhart, and K. Rogoff (2012), “Public debt overhangs: Advanced-economy episodes since 1800,” Journal of Economic Perspectives.
Reinhart, C. and K. Rogoff (2011), “From financial crash to debt crisis,” American Economic Review.
Reinhart, C. and B. Sbrancia (2015), “The liquidation of government debt,” Economic Policy.
Reinhart, C. and C. Trebesch (2016), “Sovereign debt relief and its aftermath,” Journal of the European Economic Association.
Rogoff, K. (2022), “Emerging market sovereign debt in the aftermath of the pandemic,” Journal of Economic Perspectives.
Rose, A. (2005), “One reason countries pay their debts: Renegotiation and international trade,” Journal of Development Economics.

Why join our Summer School?

All BSE Summer courses are taught to the same high standard as our Master’s programs. Join us to:

1

Network with like-minded peers

2

Study in vibrant Barcelona

3

Learn from world-renowned faculty

Admissions and Requirements

Applicants must ensure they meet course requirements or verify eligibility with Admissions Counselors.

Program date: July 6-10, 2026

Early bird deadline: April 15, 2026

Requirements

Summer School applicants normally demonstrate one or more of the following:

A strong background in Economics or a field closely related to the course topic (Statistics, Law, etc.)
Postgraduate degree or current Master’s/PhD studies related to the course topic
Relevant professional experience

Requirements for Sovereign Debt Crises: Theory, Evidence and Policy

No prior knowledge is needed, but familiarity with basic modelling and empirical techniques would be helpful to take full advantage of the course

Schedule

Here is your schedule for this edition of CREI Macroeconomics Summer School, Sovereign Debt Crises: Theory, Evidence and Policy course.

Time

6

mon

7

tue

8

wed

9

thu

10

fri

11:30 - 13:30

Lecture

Credit Transfers (ECTS)

ECTS are not available for this course

Certificate of Attendance

Participants who attend more than 80% of the course will receive a Certificate of Attendance, free of charge.

Fees

Multiple course discounts are available; see more information about available discounts. Fees for courses in other Summer School programs may vary.

Course

Sovereign Debt Crises: Theory, Evidence and Policy

Climate Change, Firms, and the Green Transition

The Data Economy: Tools and Applications

The Macroeconomics of Credit and Asset Bubbles

Monetary and Fiscal Policies for Productivity Growth: Booms, Busts, and Policy Responses

Numerical Methods for Fiscal and Monetary Policy Analysis

POLICYMETRICS: Econometrics for Macroeconomic Policy Making

Quantitative Methods for Spatial Economics

Modality

Face-to-face

Total Hours

10

15

10

ECTS

0

Regular Fee

1,199€

1,375€

1,199€

Reduced Fee*

699€

799€

699€

* Reduced Fee applies for PhD or Master’s students, Alumni of BSE Master’s programs, and participants who are unemployed.

FAQ

Need more information? Here are some commonly asked questions by participants. Any further queries, please contact our Admissions Team.

Can I see the full Summer School calendar?

You can view the full Summer School calendar here.

Is accommodation included in the course fee?

Accommodation is not included in the course fee. Participants are responsible for finding accommodation.

Are the sessions recorded?

Sessions will NOT be recorded; however, the materials provided by the professor will be available for a month after the course has finished.

How much does each Summer School course cost?

Fees for each course may vary. Please consult each course page for accurate information.

Are there any discounts available?

Yes, BSE offers a variety of discounts on its Summer School courses. See more information about available discounts or request a personalized discount quote by email.

Can I take more than one course?

Yes! you can combine any of the Summer School courses (schedule permitting). See the full course calendar.

Cancelation and Refund Policy

Please consult BSE Summer School policies for more information.

Are there any evening activities during the course?

A social dinner will take place during the week for all participants, it is free to attend.

Contact our Admissions Team.

Mix and match your summer courses!

Remember that you can combine this program with courses in any of the other BSE Summer School programs (schedule permitting). Maximise your learning this summer and take advantage of our multiple-course discount.

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