Sovereign Debt, Sovereign Debt Crises

Financial Crises and Emerging Risks

M2 Finance Technology Data (M2 FTD), Sorbonne — April 2026 — Antoine Camous

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[Lecture Overview]

Module 1 — What is sovereign debt? What is a sovereign debt crisis?

Government budget constraint, debt dynamics, fiscal and monetary dominance, history of default.

[Slides] [Notes]

Module 2 — The Eurozone sovereign debt crisis

Sudden stops in a monetary union, self-fulfilling debt crises, the diabolic loop, and the role of the ECB.

[Slides] [Notes]

Module 3 — Decomposing sovereign bond yields

Expectations vs. risk premia, term structure models, redenomination risk, and central bank interventions.

[Slides] [Notes]