Sovereign Debt Structure for Crisis Prevention
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Summary:
The debate on government debt in the context of possible reforms of the international financial architecture has thus far focused on crisis resolution. This paper seeks to broaden this debate. It asks how government debt could be structured to pursue other objectives, including crisis prevention, international risk-sharing, and facilitating the adjustment of fiscal variables to changes in domestic economic conditions. To that end, the paper considers recently developed analytical approaches to improving sovereign debt structure using existing instruments, and reviews a number of proposals--including the introduction of explicit seniority and GDP-linked instruments--in the sovereign context.
Series:
Occasional Paper No. 2005/001
Subject:
Bonds Emerging and frontier financial markets Environment External debt Financial institutions Financial markets Inflation-indexed bonds Local currency debt Natural disasters Public debt
English
Publication Date:
January 26, 2005
ISBN/ISSN:
9781589063778/0251-6365
Stock No:
S237EA
Pages:
69
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