A Delicate Equilibrium Debt Relief and Default Penalties in an International Context. [electronic resource] :
- Washington, D.C. : International Monetary Fund, 1989.
- 1 online resource (28 p.)
- IMF Working Papers; Working Paper ; No. 89/10 .
- IMF Working Papers; Working Paper ; No. 89/10 .
Debt relief and penalties are discussed in connection with sovereign-country loans. We focus on conditions for the existence of penalties that are too low for ensuring Pareto efficiency, and show the possible time inconsistency of optimal debt contracts. A methodology for ascertaining debt relief implicit in international loans is outlined.
1451926421 : 10.00 USD
1018-5941
10.5089/9781451926422.001 doi
Debt Contracts
Debt Relief
Equation
Probability Distribution
Probability
Argentina
Debt relief and penalties are discussed in connection with sovereign-country loans. We focus on conditions for the existence of penalties that are too low for ensuring Pareto efficiency, and show the possible time inconsistency of optimal debt contracts. A methodology for ascertaining debt relief implicit in international loans is outlined.
1451926421 : 10.00 USD
1018-5941
10.5089/9781451926422.001 doi
Debt Contracts
Debt Relief
Equation
Probability Distribution
Probability
Argentina