Title
How to Strengthen the International Financial System by Restructuring Sovereign Balance Sheets
Abstract
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.
Disciplines
Banking and Finance
Date of this Version
July 2007
Recommended Citation
Ross P. Buckley and Peter Dirou, "How to Strengthen the International Financial System by Restructuring Sovereign Balance Sheets" (July 2007). University of New South Wales Faculty of Law Research Series. Working Paper 50.
http://law.bepress.com/unswwps-flrps/art50
Comments
This paper was published in the Annals of Economics and Finance, (2006), vol. 2, pp. 257-269. This paper may also be referenced as [2007] UNSWLRS 50.