Getting Shut Out of the International Capital Markets - It Doesn’t Take Much

Author/Editor:

Nancy P. Marion ; Robert P Flood

Publication Date:

June 1, 2006

Electronic Access:

Free Download. Use the free Adobe Acrobat Reader to view this PDF file

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:

We use a simple model of international lending to show that an emerging market borrower who might default can be shut out of international capital markets without warning. A modest haircut on obligations, for example, can shut down lending.

Series:

Working Paper No. 06/144

Subject:

English

Publication Date:

June 1, 2006

ISBN/ISSN:

9781451864045/1018-5941

Stock No:

WPIEA2006144

Format:

Paper

Pages:

14

Please address any questions about this title to publications@imf.org