---
title: Debt Sustainability and the Range of Multiple Equilibria
url: https://www.ml-quant.com/papers/repec/nbr-nberwo-35850/
site: ML-Quant (https://www.ml-quant.com)
updated: 2026-10-23
license: Summaries CC BY 4.0; links go to the original sources
index: https://www.ml-quant.com/llms.txt
identifier: RePEc:nbr:nberwo:35850
source_url: https://econpapers.repec.org/RePEc:nbr:nberwo:35850
featured: 2026-10-23
citations: unknown
topic: Risk, Credit & Banking
---


# Debt Sustainability and the Range of Multiple Equilibria

The paper characterizes how fiscal uncertainty shrinks the range of multiple equilibria in sovereign debt markets, eventually yielding unique interest rates as uncertainty grows.

- Source: https://econpapers.repec.org/RePEc:nbr:nberwo:35850
- Identifier: RePEc:nbr:nberwo:35850
- Released: 2026-10-22
- First featured: Quant Letter No. 136 (2026-10-23): https://www.ml-quant.com/issues/2026-10-23/
- Citations (Semantic Scholar): not tracked
- Published in: not yet
- Topic: Risk, Credit & Banking
- Authors: Olivier J. Blanchard, Pedro Martínez-Bruera, Gonzalo Huertas

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