• The Costs of Bankruptcy

    The Costs of Bankruptcy

    Jiaping Qiu

    When a corporation declares bankruptcy, employee’s wages decrease significantly. This potential loss in earnings is significant enough that firms with a high risk of bankruptcy must pay their employees a higher wage to compensate them for the risky...

  • Debt dilution: the problem and possible solutions

    Debt dilution: the problem and possible solutions

    César Sosa-Padilla

    The implementation of alternative government debt contracts may help governments deal with the problems of debt dilution, the reduction in the value of existing debt triggered by the issuance of new debt.