Series: IMF Working Papers
Author(s): Marcos Chamon
Publisher: INTERNATIONAL MONETARY FUND
Publication Date: 01 June 2004
Keywords: Debt crises, multiple equilibria, financial innovation, investors, short-term debt, sovereign debt, public debt, Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook: General
Several papers argue that debt crises can be the result of self-fulfilling expectations that no one will lend to a country. I show this type of coordination failure can be eliminated by a combination of state-conti...