IPD AI

Why the Code of Conduct for Resolving Sovereign Debt Crises Falls Short

02/01/2008
Working Paper

In this paper the author situates the “Principles for Stable Capital Flows and Fair Debt Restructuring in Emerging Markets” in the context of international policy developments for treating sovereign debt crises in the late 1990s and early years of the present decade.

The paper then discusses the Principles in some detail and suggests why some of their features are attractive and others are not. This in itself suggests what features of a more balanced set of principles might look like. It also looks at how the Principles have been received (without enthusiasm) and sees this as an opening for a new approach to the problem.