Led By: Vincent Glode, Pasi M. Hamalainen Associate Professor, Associate Professor of Finance, The Wharton School
Government interventions in private debt negotiations can be more effective in preventing default waves if they account for the connections between lenders and borrowers across the whole financial network. In this session, we will discuss how impact of government subsidies, mandated debt reductions, and incentives for early debt renegotiations all target different types of default waves.
For more information on this topic, you can consult this brief summary published by Knowledge@Wharton: https://knowledge.wharton.upenn.edu/article/design-debt-relief-maximum-effect/