Will the Sovereign Debt Market Survive

Shleifer, Andrei

doi:10.2139/ssrn.373980

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Will the Sovereign Debt Market Survive

15 Pages Posted: 31 Mar 2003

See all articles by Andrei Shleifer

Andrei Shleifer

Harvard University - Department of Economics; National Bureau of Economic Research (NBER); European Corporate Governance Institute (ECGI)

There are 2 versions of this paper

Date Written: January 2003

Abstract

Economic theory and evidence from a variety of debt markets shed light on current reform proposals concerning emerging market debt. Debt markets, including the U.S. municipal bond market, generally function best when the rights of creditors are protected most effectively. Since current IMF reform proposals significantly emasculate creditor rights, they are likely to have an adverse effect on the flow of new funds to sovereign borrowers.

JEL Classification: F33, F34

Suggested Citation: Suggested Citation

Shleifer, Andrei, Will the Sovereign Debt Market Survive (January 2003). Available at SSRN: https://ssrn.com/abstract=373980 or http://dx.doi.org/10.2139/ssrn.373980