Crisis Resolution: Next Steps

86 Pages Posted: 21 Nov 2003 Last revised: 3 Aug 2022

See all articles by Barry Eichengreen

Barry Eichengreen

University of California, Berkeley; National Bureau of Economic Research (NBER); Centre for Economic Policy Research (CEPR)

Kenneth M. Kletzer

University of California at Santa Cruz; CESifo (Center for Economic Studies and Ifo Institute for Economic Research)

Ashoka Mody

International Monetary Fund (IMF) - Research Department

Multiple version iconThere are 3 versions of this paper

Date Written: November 2003

Abstract

At the April 2003 meeting of the International Monetary and Financial Committees, it was decided to further encourage the contractual approach to smoothing the process of sovereign debt restructuring by encouraging the more widespread use of collective action clauses (CACs) in international bonds. This decision was shaped partly by Mexico's successful launch of a bond subject to New York law but featuring CACs, and by subsequent issues with similar provisions from other emerging market countries. This paper reviews the developments leading up to that event, its implications, and prospects for the future. It asks whether we can expects to see additional issuance by emerging markets of bonds featuring CACs, whether such a trend would in fact help to make the world a safer financial place, and what additional steps might be taken to further enhance modalities for crisis resolution.

Suggested Citation

Eichengreen, Barry and Kletzer, Kenneth M. and Mody, Ashoka, Crisis Resolution: Next Steps (November 2003). NBER Working Paper No. w10095, Available at SSRN: https://ssrn.com/abstract=468782

Barry Eichengreen (Contact Author)

University of California, Berkeley ( email )

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Kenneth M. Kletzer

University of California at Santa Cruz ( email )

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Ashoka Mody

International Monetary Fund (IMF) - Research Department ( email )

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Washington, DC 20431
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202-589-9617 (Fax)

HOME PAGE: http://www.amody.com

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