Jump to ContentJump to Main Navigation
Sovereign Financing and International LawThe UNCTAD Principles on Responsible Sovereign Lending and Borrowing$
Users without a subscription are not able to see the full content.

Carlos Espósito, Yuefen Li, and Juan Pablo Bohoslavsky

Print publication date: 2013

Print ISBN-13: 9780199674374

Published to Oxford Scholarship Online: January 2014

DOI: 10.1093/acprof:oso/9780199674374.001.0001

Show Summary Details
Page of

PRINTED FROM OXFORD SCHOLARSHIP ONLINE (www.oxfordscholarship.com). (c) Copyright Oxford University Press, 2019. All Rights Reserved. An individual user may print out a PDF of a single chapter of a monograph in OSO for personal use. date: 19 November 2019

The Economic Rationale for the Principles on Promoting Responsible Sovereign Lending and Borrowing

The Economic Rationale for the Principles on Promoting Responsible Sovereign Lending and Borrowing

Chapter:
(p.15) 2 The Economic Rationale for the Principles on Promoting Responsible Sovereign Lending and Borrowing
Source:
Sovereign Financing and International Law
Author(s):

Yuefen Li

Ugo Panizza

Publisher:
Oxford University Press
DOI:10.1093/acprof:oso/9780199674374.003.0002

This chapter discusses how the principles on responsible sovereign lending and borrowing analysed in this volume can reduce the prevalence and costs of sovereign debt crises. The chapter describes recent trends in sovereign debt in developing and developed economies and highlights the main differences between domestic and external public debt. In discussing the origin of debt crises, the chapter demonstrates the importance of prudent fiscal policies but also points out that debt crises do not always have a fiscal nature and that good debt management is key for crisis prevention. Finally, the chapter discusses the incentive structure of the main players in the market for sovereign debt and shows how the Principles discussed in this book can potentially alter such incentives and lead to more prudent fiscal and debt management policies.

Keywords:   debt crisis prevention, principles, over borrowing, fiscal policy, spillovers

Oxford Scholarship Online requires a subscription or purchase to access the full text of books within the service. Public users can however freely search the site and view the abstracts and keywords for each book and chapter.

Please, subscribe or login to access full text content.

If you think you should have access to this title, please contact your librarian.

To troubleshoot, please check our FAQs , and if you can't find the answer there, please contact us .