Essec\Faculty\Model\Contribution {#2220
  #_index: "academ_contributions"
  #_id: "16487"
  #_source: array:26 [
    "id" => 16487
    "slug" => "16487-sovereign-default-and-liquidity-the-case-for-a-world-safe-asset"
    "yearMonth" => "2021-07"
    "year" => 2021
    "title" => "Sovereign default and liquidity: The case for a world safe asset"
    "description" => "LE GRAND, F. et RAGOT, X. (2021). Sovereign default and liquidity: The case for a world safe asset. <i>Journal of International Economics</i>, 131, pp. 103462."
    "authors" => array:2 [
      0 => array:3 [
        "name" => "LE GRAND François"
        "bid" => "B00832579"
        "slug" => "le-grand-francois"
      ]
      1 => array:1 [
        "name" => "Ragot Xavier"
      ]
    ]
    "ouvrage" => ""
    "keywords" => array:3 [
      0 => "Sovereign default"
      1 => "Safe asset"
      2 => "International liquidity"
    ]
    "updatedAt" => "2026-05-26 09:22:01"
    "publicationUrl" => "https://doi.org/10.1016/j.jinteco.2021.103462"
    "publicationInfo" => array:3 [
      "pages" => "103462"
      "volume" => "131"
      "number" => ""
    ]
    "type" => array:2 [
      "fr" => "Articles"
      "en" => "Journal articles"
    ]
    "support_type" => array:2 [
      "fr" => "Revue scientifique"
      "en" => "Scientific journal"
    ]
    "countries" => array:2 [
      "fr" => null
      "en" => null
    ]
    "abstract" => array:2 [
      "fr" => "This paper presents a positive and normative study of a world financial market when sovereign countries can default on their debt. We construct a tractable model that enables us to study sovereign default in general equilibrium. The amount of safe assets is thus endogenous and determined by international risk-sharing. We characterize the equilibrium structure and we show that the market equilibrium can generate multiple equilibria. In addition, the market equilibrium is not constrained-efficient because countries do not fully internalize the value of their debt being used as liquidity. We prove that a world fund issuing a safe asset increases aggregate welfare. The fund's relationship with the IMF's Special Drawing Rights is discussed."
      "en" => "This paper presents a positive and normative study of a world financial market when sovereign countries can default on their debt. We construct a tractable model that enables us to study sovereign default in general equilibrium. The amount of safe assets is thus endogenous and determined by international risk-sharing. We characterize the equilibrium structure and we show that the market equilibrium can generate multiple equilibria. In addition, the market equilibrium is not constrained-efficient because countries do not fully internalize the value of their debt being used as liquidity. We prove that a world fund issuing a safe asset increases aggregate welfare. The fund's relationship with the IMF's Special Drawing Rights is discussed."
    ]
    "authors_fields" => array:2 [
      "fr" => "Economie"
      "en" => "Economics"
    ]
    "indexedAt" => "2026-06-04T11:23:33.000Z"
    "docTitle" => "Sovereign default and liquidity: The case for a world safe asset"
    "docSurtitle" => "Journal articles"
    "authorNames" => "<a href="/cv/le-grand-francois">LE GRAND François</a>, Ragot Xavier"
    "docDescription" => "<span class="document-property-authors">LE GRAND François, Ragot Xavier</span><br><span class="document-property-authors_fields">Economics</span> | <span class="document-property-year">2021</span>"
    "keywordList" => "<a href="#">Sovereign default</a>, <a href="#">Safe asset</a>, <a href="#">International liquidity</a>"
    "docPreview" => "<b>Sovereign default and liquidity: The case for a world safe asset</b><br><span>2021-07 | Journal articles </span>"
    "docType" => "research"
    "publicationLink" => "<a href="https://doi.org/10.1016/j.jinteco.2021.103462" target="_blank">Sovereign default and liquidity: The case for a world safe asset</a>"
  ]
  +lang: "en"
  +"_score": 8.502932
  +"_ignored": array:2 [
    0 => "abstract.en.keyword"
    1 => "abstract.fr.keyword"
  ]
  +"parent": null
}