The rules of the game: negotiation, enforcement, contestation

.

Chapter 4 in The Debt Crisis of the 1980s, 2023, pp 93-120 from Edward Elgar Publishing

Abstract: The “cooperative” or “burden-sharing” approach that was adopted in the fall of 1982 established a precedent for all ulterior debt restructurings until the early 1990s. This chapter analyses this unique, extra-territorial set of rules which asked that sovereign debt be uploaded on a restructuring platform that was operated by the IMF. The discussion unfolds in explicit or implicit comparison with rules in force between the 1820s and 1930s, which were rooted in (typically British) domestic market institutions, and with the post-1990 quasi-regime, where national courts (typically US) exercise a large de facto influence. Throughout the decade, however, this approach asked that banks be arm-twisted by national regulators, primarily the Central Banks. This dimension, which has remained essentially ignored in the literature, is documented - as far as oral testimonies and archives allow. Also documented are the deep tensions that resulted within the Western policy elites. Lastly, the chapter discusses the policy of forbearance adopted by bank regulators and the absence of any mandatory call to banks to increase their equity capital base, in a sharp contrast with the policy adopted in 2008.

Keywords: Economics and Finance; Law - Academic; Politics and Public Policy (search for similar items in EconPapers)
Date: 2023
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.elgaronline.com/doi/10.4337/9781839103636.00011 (application/pdf)
Our link check indicates that this URL is bad, the error code is: 503 Service Temporarily Unavailable

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:elg:eechap:19593_4

Ordering information: This item can be ordered from
http://www.e-elgar.com

Access Statistics for this chapter

More chapters in Chapters from Edward Elgar Publishing
Bibliographic data for series maintained by Darrel McCalla ().