TY - JOUR
T1 - Financial crises and the multilateral response
T2 - What the historical record shows
AU - Barkbu, Bergljot
AU - Eichengreen, Barry
AU - Mody, Ashoka
N1 - Funding Information:
Outside the European crisis, there are two recent precedents of debt exchanges within Fund programs. In Jamaica, the February 2010 debt exchange on domestic debt (including foreign-currency-denominated debt) was a prior action for the approval of the standby arrangement. A large amount of IMF financing was provided upfront to finance a fund for financial institutions holding the government debt. In Seychelles, the December 2008 program was based on a comprehensive restructuring of sovereign debt to private and official creditors. But these programs are relatively small by today's standards (300 and 200% of quota, respectively) and the countries in question are not systemically important.
PY - 2012/11
Y1 - 2012/11
N2 - We provide a synoptic description of financial crises and the multilateral response over the course of the last four decades. We present both indicators of economic performance around crisis dates and a comprehensive description of multilateral rescue efforts. While emergency lending has grown, reliance on debt restructuring, broadly speaking, has declined. This leads us to ask what can be done to rebalance the management of debt problems toward a better mix of emergency lending and private sector burden sharing. In particular, we explore the idea of sovereign cocos, contingent debt securities that automatically reduce payment obligations in the event of debt-sustainability problems.
AB - We provide a synoptic description of financial crises and the multilateral response over the course of the last four decades. We present both indicators of economic performance around crisis dates and a comprehensive description of multilateral rescue efforts. While emergency lending has grown, reliance on debt restructuring, broadly speaking, has declined. This leads us to ask what can be done to rebalance the management of debt problems toward a better mix of emergency lending and private sector burden sharing. In particular, we explore the idea of sovereign cocos, contingent debt securities that automatically reduce payment obligations in the event of debt-sustainability problems.
KW - Financial crises
KW - IMF programs
KW - Multilateral response
UR - http://www.scopus.com/inward/record.url?scp=84869883585&partnerID=8YFLogxK
UR - http://www.scopus.com/inward/citedby.url?scp=84869883585&partnerID=8YFLogxK
U2 - 10.1016/j.jinteco.2012.02.006
DO - 10.1016/j.jinteco.2012.02.006
M3 - Article
AN - SCOPUS:84869883585
SN - 0022-1996
VL - 88
SP - 422
EP - 435
JO - Journal of International Economics
JF - Journal of International Economics
IS - 2
ER -