El bucle de retroalimentación entre la insolvencia soberana y la del sector financiero se ha identificado como un impulsor clave de la crisis de deuda europea y ha motivado una serie de propuestas políticas. Revisamos este «bucle de perdición» centrándonos en los incentivos de los...

An April 2015 World Bank report on attainment of the Millennium Development Goal (MDG) extreme poverty target has revealed that extreme poverty has been decreasing in all regions of the world with the exception of sub-Saharan Africa (SSA), in spite of the sub-region enjoying more than two...

The purpose of this study is to demonstrate that African perceptions of donor agencies such as China may differ from country to country, and are informed by elements such as the country of origin, the knowledge base and orientation towards China. China has been a longstanding partner of Africa...

Over the past four decades, developing countries have not been immune to international financial changes. Today, the destabilizing effects of financial liberalization are affecting even developed economies. This paper reviews the theoretical foundations and the different relationships between...

The history of debt relief is now particularly long, the associated costs are soaring and the outcomes are at least uncertain. This paper reviews and provides new evidence on the effects of recent debt relief programs on different macroeconomic indicators in developing countries, focusing on the...

In 2005, more than 20 billion dollars were bought back by Paris Club debtors: Russia USD 15 billion Poland USD 5.4 billion and Peru USD 1.5 billion. During the first half of 2006, more than USD 30 billion in buybacks was announced: Russia USD 22 billion, Algeria USD 8 billion dollars, Brazil USD...

Speaking before the IDB Board of Directors, Carmen Reinhart discussed the syndrome of “debt intolerance,” whereby countries with weak institutional structures and problematic political systems borrow in order to avoid difficult fiscal decisions but subsequently find themselves unwilling or...

In this paper, we study the effectiveness of fiscal policies in a framework of a small open economy where the behaviour of representative consumer is characterised by endogenous time preference which depends on wealth and consumption.

This paper introduces the concept of “debt intolerance,” which manifests itself in the extreme duress many emerging markets experience at debt levels that would seem manageable by advanced country standards. We argue that “safe” external debt-to-GNP thresholds for debt intolerant...

Sovereign debt crises in emerging markets are usually associated with liquidity and banking crises within the economy. This connection is suggested by both anecdotical and empirical evidence. The conventional view is that the domestic financial turmoil is caused by foreign creditors'...