Princeton Sovereign Finance Lab

@princetonsovfinlab.bsky.social

Policy-relevant research on the political economy of government finance. Based at Princeton SPIA; part of the Niehaus Center for Globalization and Governance. Directed by laynamosley.bsky.social & peterrosendorff.bsky.social https://psfl.princeton.edu

Domestic politics of debt crises/restructuring: -Blame predecessors for high debt burden (hidden debt revelations make this effective). -Avoid IMF program & conditions. -Hold out for an improvement in debt servicing capacity, perhaps through resource revenues or taxation. on.ft.com/3JERoii

Senegal’s foreign bonds plunge as government rules out restructuring

West African nation has become a test of IMF’s ability to deal with hidden debt and secure relief from creditors to support bailouts

on.ft.com

Not the "vigilantes," says the FT, but some bond investors who are worried about fiscal deficits in large, wealthy economies. on.ft.com/4gIQ2hR [An old story about investors' concern with overall deficit and debt levels: www.cambridge.org/core/journal... @princetonsovfinlab.bsky.social

Bond market ‘police’ are back as investors patrol spending plans

Debt market flare-ups show growing pushback against governments’ loose fiscal policies

on.ft.com

"Higher US rates would make investing in riskier markets abroad relatively less attractive...." on.ft.com/3ASkExC Ballard-Rosa, Mosley & Wellhausen 2021: the "democratic advantage" in sovereign borrowing only exists when rates are high in mature markets. [ www.cambridge.org/core/journal...

Strong dollar set to hit emerging market bonds, warn investors

EM debt funds suffer outflows as hopes of rate cuts by developing nations fade

on.ft.com