• CREDIT RATING AND DEBT CRISES 

      Holden, Steinar; Natvik, Gisle James; Vigier, Adrien Henri (Journal article; Peer reviewed, 2018)
      We develop an equilibrium theory of credit rating in the presence of rollover risk. By influencing rational creditors, ratings affect sovereigns' probability of default, which in turn affects ratings. Our analysis reveals ...
    • Leaning Against The Credit Cycle 

      Natvik, Gisle James; Gelain, Paolo; Lansing, Kevin (Journal article; Peer reviewed, 2018)
      How should a central bank act to stabilize the ratio of debt over gross domestic product (GDP)? We show how the persistent nature of household debt shapes the answer to this question. In environments where households repay ...