International Financial Crises and the Multilateral Response: What the Historical Record Shows

Bergljot Barkbu, Barry Eichengreen and Ashoka Mody

No 17361, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: We review the modern history of financial crises, providing a context for analyses of the world's recent bout of financial instability. Along with indicators of economic performance in the subject countries, we present a comprehensive description of multilateral rescue efforts spanning the last 30 years. We show that while emergency lending has grown, reliance on debt restructuring 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. Building on the literature on collective action clauses, we explore the idea of sovereign cocos, contingent debt securities that automatically reduce payment obligations in the event of debt-sustainability problems.

JEL-codes: F0 F4 (search for similar items in EconPapers)
Date: 2011-08
New Economics Papers: this item is included in nep-his and nep-ifn
Note: IFM
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Citations: View citations in EconPapers (8)

Published as Financial Crises and the Multilateral Response: What the Historical Record Shows , Bergljot Barkbu, Barry Eichengreen, Ashoka Mody. in Global Financial Crisis , Engel, Forbes, and Frankel. 2012

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