Crisis costs and debtor discipline: the efficacy of public policy in sovereign debt crises

Prasanna Gai, Simon Hayes, Hyun Song Shin

    Research output: Contribution to journalArticle

    Abstract

    Recent debate on the reform of the international financial architecture has highlighted the potentially important role of the official sector in crisis management. We examine how such public intervention in sovereign debt crises affects efficiency, ex ante and ex post. Our results shed light on the scale of capital inflows and the implications for debtor country output of such a regime. The efficacy of measures such as officially sanctioned stays on creditor litigation depend critically on the quality of public sector surveillance and the size of the costs of sovereign debt crises.
    Original languageEnglish
    Pages (from-to)245-262
    JournalJournal of International Economics
    Volume62
    Issue number2
    DOIs
    Publication statusPublished - 2004

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