A Skeptic's Case for Sovereign Bankruptcy
34 Pages Posted: 9 Jan 2013 Last revised: 18 Oct 2013
Date Written: April 9, 2013
This essay describes fundamental flaws in the sovereign debt restructuring regime, but questions the prevailing arguments for sovereign bankruptcy. I conclude that efficient debt outcomes may well come about without bankruptcy, but that a statutory regime is necessary to achieve sovereign autonomy and political legitimacy.
Keywords: sovereign debt, debt restructuring, sovereign bankruptcy, SDRM
JEL Classification: F34
Suggested Citation: Suggested Citation