Author: Jeanne, Olivier

Source: The American Economic Review, Volume 99, Number 5, December 2009 , pp. 2135-2148(14)

Publisher: American Economic Association

Abstract:

This paper presents a theory of the maturity of international sovereign debt, and derives its implications for the reform of the international financial architecture. The analysis is based on a model in which the need to roll over external debt disciplines the policies of debtor countries, but makes them vulnerable to unwarranted debt crises due to bad shocks. The paper presents a welfare analysis of several measures that have been discussed in recent debates, such as international lending-in-last-resort or the establishment of a mechanism for suspending payments on the external debt of crisis countries.

Document Type: Short communication

DOI: http://dx.doi.org/10.1257/aer.99.5.2135

Publication date: 2009-12-01

More about this publication?

• The American Economic Review is a general-interest economics journal. The journal is published quarterly and contains articles on a broad range of topics. Established in 1911, the AER is among the nation's oldest and most respected scholarly journals in the economics profession.
• Editorial Board
• Information for Authors
• Subscribe to this Title
• Membership Information
• Terms & Conditions
• e-Publications for AEA Members
• AEAweb
• ingentaconnect is not responsible for the content or availability of external websites

Related content

• In this: publication
• By this: publisher
• In this Subject: Economics
• By this author: Jeanne, Olivier

Website © Publishing Technology. Article copyright remains with the publisher, society or author(s) as specified within the article.

• Terms and conditions
• Privacy policy
• Information for advertisers