Skip navigation
4
0

Attachments [ 0 ]

There are no files associated with this item.

More Details

2008
INTERNATIONAL MONETARY FUND
INTERNATIONAL MONETARY FUND
1018-5941 | 2227-8885
EPUB
Working Paper No. 08/238
9781452701653 | 9781451915495 | 9781452701653 | 9781462331574

This paper evaluates empirically four types of cost that may result from an international sovereign default: reputational costs, international trade exclusion costs, costs to the domestic economy through the financial system, and political costs to the authorities. It finds that the economic costs are generally significant but short-lived, and sometimes do not operate through conventional channels. The political consequences of a debt crisis, by contrast, seem to be particularly dire for incumbent governments and finance ministers, broadly in line with what happens in currency crises.

Comments

(Leave your comments here about this item.)

Item Analytics

Select desired time period