-fulfilling capital account crises, and generate a role for international crisis lending. International lending could be used to back … domestic last-resort lending to banks, or to loosen fiscal constraints. Provided they have a sound fiscal position in normal …

This paper surveys the recent literature on sovereign debt and relates it to the evolution of the legal principles … underlying the sovereign debt market and the experience of the most recent debt crises and defaults. It finds limited support for … theories that explain the feasibility of sovereign debt based on either external sanctions or exclusion from the international …

lending need to be conditional on government policies beforethe crisis. …

Using a simple model of international lending, we show that as long as the IMF lends at an actuarially fair interest … borrowing costs in response to IMF crisis lending are efficient. Thus, under these assumptions, the IMF cannot cause moral … hazard, as argued by Michael Mussa (1999, 2004). It follows that examining the effects of IMF lending on capital flows or …

lending need to be conditional on government policies before the crisis …

Using a simple model of international lending, we show that as long as the IMF lends at an actuarially fair interest … borrowing costs in response to IMF crisis lending are efficient. Thus, under these assumptions, the IMF cannot cause moral … hazard, as argued by Michael Mussa (1999 and 2004). It follows that examining the effects of IMF lending on capital flows or …

Using a simple model of international lending, we show that as long as the IMF lends at an actuarially fair interest … borrowing costs in response to IMF crisis lending are efficient. Thus, under these assumptions, the IMF cannot cause moral … hazard, as argued by Michael Mussa (1999 and 2004). It follows that examining the effects of IMF lending on capital flows or …

We present a framework that clarifies the financial role of the IMF, the rationale for conditionality, and the … conditions under which IMF-induced moral hazard can arise. In the model, traditional conditionality commits country authorities … to undertake crisis resolution efforts, facilitating the return of private capital, and ensuring repayment to the IMF …

To better fulfill its crisis-prevention mandate, IMF surveillance needs to provide stronger incentives for countries to … shortcomings. A country`s potential access to IMF credits should be linked to the quality of its policies in noncrisis periods in …