Crisis Resolution: Next Steps / Barry Eichengreen, Kenneth Kletzer.

Format:

Book

Author/Creator:

Eichengreen, Barry.

Contributor:

Kletzer, Kenneth.

National Bureau of Economic Research.

Series:

Working Paper Series (National Bureau of Economic Research) no. w10095.

NBER working paper series no. w10095

Language:

English

Physical Description:

1 online resource: illustrations (black and white);

Other Title:

Crisis Resolution

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 2003.

Summary:

At the April 2003 meeting of the International Monetary and Financial Committees, it was decided to further encourage the contractual approach to smoothing the process of sovereign debt restructuring by encouraging the more widespread use of collective action clauses (CACs) in international bonds. This decision was shaped partly by Mexico's successful launch of a bond subject to New York law but featuring CACs, and by subsequent issues with similar provisions from other emerging market countries. This paper reviews the developments leading up to that event, its implications, and prospects for the future. It asks whether we can expects to see additional issuance by emerging markets of bonds featuring CACs, whether such a trend would in fact help to make the world a safer financial place, and what additional steps might be taken to further enhance modalities for crisis resolution.

Notes:

Print version record

November 2003.