How to Strengthen the International Financial System By Restructuring Sovereign Balance Sheets

UNSW Law Research Paper No. 2007-50

Annals of Economics and Finance, Vol. 2, pp. 257-269, 2006

19 Pages Posted: 30 Jul 2007

See all articles by Ross P. Buckley

Ross P. Buckley

University of New South Wales (UNSW) - Faculty of Law

Peter Dirou

Government of Indonesia, Ministry of Finance

Abstract

The inability of developing nations to borrow in their own currency leads to currency mismatches on their national balance sheets. These mismatches render these economies vulnerable to external shocks and are a major source of damaging volatility for the entire international financial system. This article argues why these mismatches need to be remedied, and how the multilateral development banks and the Paris Club can take the lead in doing so.

Keywords: International Lending and Debt Problems, Sovereign Balance Sheet Structure, Sovereign Bond Markets

Suggested Citation

Buckley, Ross P. and Dirou, Peter, How to Strengthen the International Financial System By Restructuring Sovereign Balance Sheets. UNSW Law Research Paper No. 2007-50; Annals of Economics and Finance, Vol. 2, pp. 257-269, 2006. Available at SSRN: https://ssrn.com/abstract=1003307

Ross P. Buckley (Contact Author)

University of New South Wales (UNSW) - Faculty of Law ( email )

Sydney, New South Wales 2052
Australia

Peter Dirou

Government of Indonesia, Ministry of Finance ( email )

Indonesia

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