IDEAS home Printed from
   My bibliography  Save this article

How to Strengthen the International Financial System by Restructuring Sovereign Balance Sheets


  • Ross P. Buckley

    (Tim Fischer Centre for Global Trade & Finance, Faculty of Law, Bond University)

  • Peter Dirou

    (Treasury Advisor, Ministry of Finance)


The inability of developing nations to borrow in their own currency leads to currency mismatches on their national balance sheets. These mismatches render these economies vulnerable to external shocks and are a major source of damaging volatility for the entire international financial system. This article argues why these mismatches need to be remedied, and how the multilateral development banks and the Paris Club can take the lead in doing so.

Suggested Citation

  • Ross P. Buckley & Peter Dirou, 2006. "How to Strengthen the International Financial System by Restructuring Sovereign Balance Sheets," Annals of Economics and Finance, Society for AEF, vol. 7(2), pages 257-269, November.
  • Handle: RePEc:cuf:journl:y:2006:v:7:i:2:p:257-269

    Download full text from publisher

    File URL:
    Download Restriction: no

    File URL:
    Download Restriction: no

    References listed on IDEAS

    1. Morris Goldstein & Philip Turner, 2004. "Controlling Currency Mismatches in Emerging Markets," Peterson Institute Press: All Books, Peterson Institute for International Economics, number 373.
    2. Pettis, Michael, 2001. "The Volatility Machine: Emerging Economies and the Threat of Financial Collapse," OUP Catalogue, Oxford University Press, number 9780195143300.
    3. Blair Comley & David Turvey, 2005. "Debt Management in a Low Debt Environment: The Australian Government's Debt Management Framework," Treasury Working Papers 2005-02, The Treasury, Australian Government, revised Feb 2005.
    Full references (including those not matched with items on IDEAS)


    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.

    Cited by:

    1. Jamel Boukhatem, 2009. "Essai sur les déterminants empiriques de développement des marchés obligataires," EconomiX Working Papers 2009-32, University of Paris Nanterre, EconomiX.
    2. Irena Jankovic & Bosko Zivkovic, 2014. "An Analysis Of The Effect Of Currency Mismatch On A Country’S Default Risk," Economic Annals, Faculty of Economics, University of Belgrade, vol. 59(201), pages 85-122, April – J.

    More about this item


    International lending and debt problems; Sovereign balance sheet structure; Sovereign bond markets;

    JEL classification:

    • F33 - International Economics - - International Finance - - - International Monetary Arrangements and Institutions
    • F34 - International Economics - - International Finance - - - International Lending and Debt Problems


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cuf:journl:y:2006:v:7:i:2:p:257-269. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Qiang Gao). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.