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Keywords:soft default 

Briefing
How Do Real Exchange Rates Vary in Hard and Soft Sovereign Defaults?

Sovereign defaults differ tremendously in creditor losses. Existing research has established that hard defaults (large creditor loss defaults) are associated with worse outcomes for GDP per capita than soft defaults. In this article, we document that hard defaults also feature worse real exchange rate depreciations.
Richmond Fed Economic Brief , Volume 22 , Issue 40

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