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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)

€675 - €1,175

Face to Face

English

Program date: July 7 - 11, 2025

Early bird deadline: April 15, 2025

Learn more

Sovereign Debt Crises: Theory, Evidence and Policy

Applications for 2025 Summer School programs are now open!

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Summer school

CREI - Macroeconomics

Sovereign Debt Crises: Theory, Evidence and Policy

This course provides an overview of sovereign debt crises, covering key theories, financial market roles, liquidity vs. solvency crises, and policy responses. It concludes with an analysis of the European crisis.

Teaching Faculty

This course provides a well-rounded view of sovereign debt crisis covering theory and practice

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.

Gain a formal understanding of key sovereign debt models with a focus on concepts and policy implications

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.

Program Syllabus for Sovereign Debt Crises Theory, Evidence and Policy program

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

Acharya, V., I. Drechsler, and P. Schnabl (2014), “A pyrrhic victory? Bank bailouts and sovereign credit risk,” Journal of Finance.
Aguiar, M. and G. Gopinath (2006), “Defaultable debt, interest rates and the current account,” Journal of International Economics.
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.
Gennaioli, N., A. Martin and S. Rossi (2014), “Sovereign default, domestic banks, and financial institutions,” Journal of Finance.
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. and K. Rogoff (2011), “From financial crash to debt crisis,” American Economic Review.
Reinhart, C., V. Reinhart, and K. Rogoff (2012), “Public debt overhangs: Advanced-economy episodes since 1800,” Journal of Economic Perspectives.
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.
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 7 - 11, 2025

Early bird deadline: April 15, 2025

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.

Apply now

Schedule

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

Time

7

mon

8

tue

9

wed

10

thu

11

fri

11:30 - 13:30

Lecture

Credit transfers (ECTS)

ECTs are not available for this course.

Certificate of Attendance

Participants will receive a Certificate of Attendance free of charge. Participants will not be graded or assessed during the course.

Fees for 2025

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

Course

Monetary and Fiscal Policies for Productivity Growth

The Data Economy: Tools and Applications

The Macroeconomics of Credit and Asset Bubbles

Numerical Methods for Fiscal and Monetary Policy Analysis

Climate Change, Firms, and the Green Transition

Quantitative Methods for Spatial Economics

Sovereign Debt Crises: Theory, Evidence and Policy

POLICYMETRICS: Econometrics for Macroeconomic Policy Making

Modality

Face to Face

Total Hours

10

15

10

15

ECTS

0

Regular Fee

1,175€

1,375€

Reduced Fee*

675€

775€

FAQ’s

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

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 be recorded and videos will be available for a month once 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.