Bailouts or bail-ins? : responding to financial crises in emerging economies / Nouriel Roubini and Brad Setser.

Format:

Book

Author/Creator:

Roubini, Nouriel.

Contributor:

Setser, Brad.

Language:

English

Subjects (All):

Loans, Foreign--Developing countries.

Loans, Foreign.

Financial crises--Developing countries.

Financial crises.

International finance.

Debt--Developing countries.

Debt.

Physical Description:

1 online resource (442 p.)

Edition:

1st ed.

Place of Publication:

Washington, DC : Institute for International Economics, 2004.

Language Note:

English

Summary:

The study calls for a two-track strategy: first, deep multilateral liberalization involving phased but complete elimination of industrial-county protection and deep reduction of protection by at least the middle-income developing countries, albeit on a more gradual schedule; and second, immediate free entry for imports from high risk low-income countries (heavily indebted poor countries, least developed countries, and sub-Saharan Africa), coupled with a 10-year tax holiday for direct investment in these countries.

Contents:

Cover

Contents

Preface

Acknowledgments

Chapter 1 Introduction

Why Crisis Resolution?

Purging Unhelpful Myths

Closing the Gap Between Rhetoric and Reality

Agenda for Reform

Structure of the Book

Chapter 2 New Nature of Emerging-Market Crises

Sources of Vulnerability in Emerging-Market Crises

Interpreting Recent Crises

Conclusions

Chapter 3 Analytical Literature on Crisis Resolution

Four Approaches to Crisis Resolution

Crisis Resolution in IMF's Absence

IMF, Crises of Creditor Coordination, and Moral Hazard

Do Partial Bailouts Ever Work?

Policy Implications and Suggestions for Further Research

Chapter 4 Experience with Bailouts and Bail-ins

Experience with Official Financing

Experience with Bail-in Policies: Rollover Arrangements and Debt Exchanges

Lessons for the Official Sector

Lessons from Bond Restructurings

Lessons from Restructuring of Bank Claims

Chapter 5 Official Policy Toward Crisis Resolution

Reaction to Mexico's Bailout

Reform of the International Financial Architecture

The Debate Fractures

A New Administration, a New Policy?

Chapter 6 Responding to Liquidity Shortages

When Is Official Liquidity Support Warranted?

Are Targeted Debt Reschedulings Inequitable?

Risks of Gradual Escalation

Case for Pragmatism

Private-Sector Financial Difficulties

Alternative Approaches to Liquidity Crises

What Is the Right Policy?

Chapter 7 Seniority of Sovereign Debts

Relative Treatment of Different Sovereign Claims

Domestic Versus External Debt

Arguments in Favor of a Formal Debt Seniority Regime

Conclusion

Chapter 8 Legal Reform

Potential Obstacles to Sovereign Debt Restructuring

Approaches to Legal Reform

Codes and Committees

Assessing Reform Proposals

Conclusion.

Chapter 9 Recommendations for Reform

"Hardware" Largely in Place

Problems with Crisis Resolution "Software"

Moving from Problems to Solutions

Appendix A Tables

References

Glossary

Index.

Notes:

"A Council on Foreign Relations book."

Includes bibliographical references (p. 391-405) and index.

ISBN:

1-281-39714-8

9786611397142

0-88132-460-4

1-4356-5535-4

OCLC:

290580194