The Paper sets out the principles that should underlie sovereign debt restructuring. It argues for a rules … some official intervention. The Paper discusses why intervention in the form of a Sovereign Debt Restructuring Mechanism …

If interest rates (country spreads) rise, debt can rapidly be subject to a snowball effect, which then becomes self … illuminates the potential role of collective action clauses (CACs) in eliminating the risk of self-fulfilling debt crises. …

If interest rates (country spreads) rise, debt can rapidly be subject to a snowball effect, which then becomes self …

between generalized financial crises on the one hand and isolated bank failures, debt defaults and foreign-exchange market … disturbances on the other. We represent this distinction in three sets of linkages: between debt defaults and bank failures …; between exchange-market disturbances and debt defaults; and between exchange-market disturbances and bank failures. In both …

This paper analyzes the 'debt crisis' of the 1930s to see what light this historical experience sheds on recent … incidence and extent of default on sovereign debt, adapting models of debt capacity to the circumstances of the interwar years …

borrowing, default and debt readjustment. In explaining the incidence and extent of default, we highlight the importance of a … range of factors, both economic and political. We find evidence that countries that interrupted debt service recovered more …

"If interest rates (country spreads) rise, debt can rapidly be subject to a snowball effect, which then becomes self …