Hyungseok Joo graduated from the Yonsei University in South Korea and received a Ph.D. in Economics from Boston University in 2015. He joined the University of Surrey as Lecturer in 2019, after having spent years of research and teaching at Wayne State University, USA. His main research mainly focuses on Macroeconomics, International Finance/Macro, and Money and Banking.
Macroeconomics, International Finance/Macroeconomics, Fiscal Policy, and Money and Banking
Intermediate Macroeconomics 1
Foundations of Macroeconomics
Foreign creditors’ business cycles influence both the process and the outcome of sovereign debt restructurings. We compile two datasets on creditor committees and chairs and on creditor business and financial cycles at the restructurings, and find that when creditors experience high GDP growth, restructurings are delayed and settled with smaller haircuts. To rationalize these stylized facts, we develop a theoretical model of sovereign debt with multi-round renegotiations between a risk averse sovereign debtor and a risk averse creditor. The quantitative analysis of the model shows that high creditor income results in both longer delays in renegotiations and smaller haircuts. Our theoretical predictions are supported by data. (JEL: F34, F41, H63)