Corsetti, Giancarlo; Guimaraes, Bernardo; Roubini, Nouriel - 2021
It is often argued that the provision of liquidity by the international institutions such as the IMF to countries … point out that official lending also causes moral hazard distortions: expecting to be bailed out by the IMF, debtor … three classes of optimizing agents: international investors, the local government and the IMF. We show how an international …