Can Debt Crises Be Self-Fulfilling? /

Several papers argue that debt crises can be the result of self-fulfilling expectations that no one will lend to a country. I show this type of coordination failure can be eliminated by a combination of state-contingent securities and a mechanism that allows investors to promise to lend only if enou...

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Bibliographic Details
Main Author: Chamon, Marcos
Format: Journal
Language:English
Published: Washington, D.C. : International Monetary Fund, 2004.
Series:IMF Working Papers; Working Paper ; No. 2004/099
Online Access:Full text available on IMF