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.
Banking and Finance
Date of this Version
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.