Sovereign debt restructurings are associated with declines in GDP, investment, bank credit, and capital flows. The transmission channels and associated output and banking sector costs depend on whether the restructuring takes place preemptively, without missing payments to creditors, or whether...

'The IMF's Role in the Prevention and Resolution of Sovereign Debt Crises' provides a guided narrative to the IMF's policy papers on sovereign debt produced over the last 40 years. The papers are divided into chapters, tracking four historical phases: the 1980s debt crisis; the Mexican crisis...

Emerging countries that have defaulted on their debt repayment obligations in the past are more likely to default again in the future than are non-defaulters even with the same debt-to-GDP ratio. This paper explains this stylized fact within a dynamic stochastic general equilibrium framework by...

Emerging countries that have defaulted on their debt repayment obligations in the past are more likely to default again in the future than are non-defaulters even with the same external debt-to-GDP ratio. These countries actually have repeated defaults or restructurings in short periods. This...

This paper assesses the impact of crude oil price movements on two macro variables - the gross domestic product (GDP) growth rate and consumer price index inflation rate - in the developed economies of the United States and Japan, and an emerging economy, the People's Republic of China (PRC)....