A Compendium of Policy Instruments to Enhance Financial Stability and Debt Management in Emerging Market Economies

DESA Working Paper No. 48

28 Pages Posted: 5 Aug 2007

See all articles by Ronald U. Mendoza

Ronald U. Mendoza

Ateneo De Manila University - Ateneo School of Government

Date Written: July 2007

Abstract

Drawing on the available theory and empirical evidence, this paper attempts to map out some of the key factors that contribute to international financial instability. It then uses this to develop a possible taxonomy for the array of proposed (and some already existing) policy instruments designed to enhance financial stability and debt management in emerging market economies. The purpose of this taxonomy is to relate each instrument to the particular aspect(s) of the broader policy challenge, thus clarifying differences and/or similarities across these instruments and proposals. The analysis herein suggests that instruments that could help increase the efficiency of risk management strategies (such as growth- or GDP-indexed bonds) and enhance the effectiveness of debt management, growth and development policies (such as a stability and social investment facility or SIF) need to be considered further.

Keywords: debt sustainability, debt trap, emerging markets, financial stability

JEL Classification: F33, F34, H63

Suggested Citation

Mendoza, Ronald U., A Compendium of Policy Instruments to Enhance Financial Stability and Debt Management in Emerging Market Economies (July 2007). DESA Working Paper No. 48. Available at SSRN: https://ssrn.com/abstract=1004759 or http://dx.doi.org/10.2139/ssrn.1004759

Ronald U. Mendoza (Contact Author)

Ateneo De Manila University - Ateneo School of Government ( email )

Katipunan Road
Loyola Heights
Quezon City, 1108
Philippines

Register to save articles to
your library

Register

Paper statistics

Downloads
106
Abstract Views
607
rank
256,752
PlumX Metrics