Sovereign Debt and Power Dynamics

This course explores the economics and politics of sovereign debt, focusing on the sustainability of public borrowing and the power dynamics shaping debt resolution processes. Students will analyze how debt decisions are made under uncertainty and examine the implications for domestic economies and the global financial system. The course is divided into two parts: the first covers the structure of sovereign debt, market incentives, and macroeconomic linkages; the second examines sovereign debt crises, including restructuring processes, negotiation challenges, and the roles of key institutions such as the IMF. Case studies—including Argentina, Greece, Puerto Rico, and ongoing restructurings in developing economies—provide practical insight. The course is designed for students interested in policymaking, international finance, or advanced academic work in this field.