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Debt Maturity and the International Financial Architecture

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  • Mr. Olivier D Jeanne

Abstract

This paper presents a theory of the maturity of international sovereign debt and derives its implications for the reform of the international financial architecture. It presents a general equilibrium model in which the need to roll over external debt disciplines the policies of debtor countries but makes them vulnerable to unwarranted debt crises owing to bad shocks. The paper presents a welfare analysis of several measures that have been discussed in recent debates, such as the adoption of renegotiation-friendly clauses in debt contracts and the establishment of an international bankruptcy regime for sovereigns.

Suggested Citation

  • Mr. Olivier D Jeanne, 2004. "Debt Maturity and the International Financial Architecture," IMF Working Papers 2004/137, International Monetary Fund.
    • Handle: RePEc:imf:imfwpa:2004/137
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    More about this item

    Keywords

    WP; short-term debt; debtor country;
    All these keywords.

    JEL classification:

    • F34 - International Economics - - International Finance - - - International Lending and Debt Problems
    • O19 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - International Linkages to Development; Role of International Organizations

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