Cover IMF Working Papers
Market Discipline
Author:
Mr. Timothy D. Lane
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Series:
IMF Working Papers
Volume/Issue:
Volume 1992: Issue 042
Language:
English
Publication Date:
01 Jun 1992
DOI:
https://doi.org/10.5089/9781451846157.001
ISBN:
9781451846157
ISSN:
1018-5941
Pages:
50
Keywords:
WP; market discipline; markets discipline borrower; financial market liberalization; exchange rate; market lender; market perception; market forces; market access; market participant; Deposit insurance; Debt default; Debt financing; Central and Eastern Europe
Legal-disclaimer:
IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.
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Under what circumstances can market forces prevent unsustainable borrowing? Effective market discipline requires that capital markets be open, that; information on the borrower’s existing liabilities be readily available, that no bailout be anticipated, and that the borrower respond to market signals. This paper explores the implications of these conditions, and reviews some relevant empirical evidence.
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Cover IMF Working Papers
IMF Working Papers
ISSN:
1018-5941
Publisher:
International Monetary Fund
Volume 1992: Issue 042