This Article argues that the norms and legal practices of global finance in the arenas of sovereign debt and private wealth have led to a significant market failure, in particular the over-supply of sovereign borrowing and a related misallocation of global capital away from its most productive...

Capital controls have been adopted by emerging economies to change the volume and the composition of capital flows and to protect the economy from sudden stops. The effectiveness measured by empirical studies has remained inconclusive, due to the limitation of the available data. This paper...

This article considers the development of sukuk as the mainstay element of the "debt" or finance side of the Islamic capital markets. The two general types of sukuk are described: whole-business securitization sukuk; and asset secrutization sukuk. Differences between the conventional...

This paper compares the restructuring of sovereign bonds with and without collective action clauses. One conclusion is that collective action clauses can allow efficient debt renegotiation in a formal model of sovereign debt renegotiation while unanimity rules offer incentives for opportunistic...

The benefits of cross-border financial activity are wide-ranging, from greater competition and more efficient markets to broader and more stable access to capital. During normal economic times, the official sector and private sector share an incentive to foster such cross-border financial...

Current discussions among major economists finds significant disagreement in defining the status of the global economy. This article examines the main themes in the context of the theories presented on savings, consumption and investment. The primitive society concept of “limited good”...

This paper shows that, in the present non-system of international payments, the indebted countries serve interest twice over. Once net interests have been financed in their entirety by trade and financial surpluses, indebted countries suffer furthermore the loss of an equal measure of their...

This paper examines the impact of the emergence of regional blocs (customs unions) on the patterns of inter-bloc and intra-bloc trade when firms have the option to engage in direct investment (FDI). The consequences of bloc formation for exogenously given external tariffs is examined first. When...

This paper develops an economic theory of international investment agreements, applies it to explain central features of modern investment treaties, and uses it to address a number of prominent issues in international investment litigation. The paper argues that investment agreements have a dual...

We review the large literature on various economic policies that could help developing economies effectively manage the process of financial globalization. Our central findings indicate that policies promoting financial sector development, institutional quality, and trade openness appear to help...