Gai, Prasanna, Hayes, Simon and Shin, Hyun Song (2001) Crisis costs and debtor discipline: the efficacy of public policy in sovereign debt crises. Financial Markets Group Discussion Papers (390). Financial Markets Group, The London School of Economics and Political Science, London, UK.
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Abstract
Recent debate on the reform of the international financial architecture has highlighted the potentially important role of the official sector in crisis management. We examine how such public intervention in sovereign debt crises affects efficiency, ex ante and ex post. Our results shed light on the scale of capital inflows in such a regime, and we establish conditions under which this leads to an improvement in debtor country welfare. The efficacy of measures such as officially sanctioned stays on creditor litigation depend critically on the quality of public sector surveillance and the size of the costs of sovereign debt crises.
| Item Type: | Monograph (Discussion Paper) |
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| Official URL: | https://www.fmg.ac.uk/ |
| Additional Information: | © 2001 The Authors |
| Divisions: | Financial Markets Group |
| Subjects: | H Social Sciences > HG Finance H Social Sciences > HB Economic Theory |
| JEL classification: | H - Public Economics > H6 - National Budget, Deficit, and Debt > H60 - General |
| Date Deposited: | 28 Aug 2009 15:58 |
| Last Modified: | 11 Dec 2024 18:30 |
| URI: | http://eprints.lse.ac.uk/id/eprint/25066 |
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