Debt Maturity and the International Financial Architecture

July 1, 2004

Preview Citation

Format: Chicago

Olivier D Jeanne. Debt Maturity and the International Financial Architecture, (USA: International Monetary Fund, 2004) accessed November 21, 2024

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

This paper presents a theory of the maturity of international sovereign debt and derives its implications for the reform of the international financial architecture. It presents a general equilibrium model in which the need to roll over external debt disciplines the policies of debtor countries but makes them vulnerable to unwarranted debt crises owing to bad shocks. The paper presents a welfare analysis of several measures that have been discussed in recent debates, such as the adoption of renegotiation-friendly clauses in debt contracts and the establishment of an international bankruptcy regime for sovereigns.

Subject: Collective action clauses, Debt default, External debt, Financial crises, Public debt

Keywords: Debtor country, Short-term debt, WP

Publication Details

Pages:

33
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 2004/137
Stock No:

WPIEA1372004
ISBN:

9781451855944
ISSN:

1018-5941

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