Taking Stock of Risk Management Techniques for Sovereigns
35 Pages Posted: 30 Apr 2005
Date Written: April 2005
Abstract
This paper reviews the current state of affairs and thinking on external risk management for developing countries. It tries to identify the reasons behind the limited risk management by sovereigns. Perverse incentives arising from a too generous international safety net, limited access to international financial markets by developing countries arising from low creditworthiness, a limited supply of financial risk management tools suited to developing countries, and a poor supply of skills have inhibited risk management. Another constraint has been the limited attention given to the strategic objectives for risk management. Going forward, the paper identifies actions by international financial markets, countries and international financial institutions that can help improve risk management.
Suggested Citation: Suggested Citation
Do you have negative results from your research you’d like to share?
Recommended Papers
-
By Carmen Reinhart, Kenneth Rogoff, ...
-
International Institutions for Reducing Global Financial Instability
-
By Jonathan Eaton and Raquel Fernández
-
One Reason Countries Pay Their Debts: Renegotiation and International Trade
-
One Reason Countries Pay Their Debts: Renegotiation and International Trade
-
One Reason Countries Pay Their Debts: Renegotiation and International Trade
-
Can Output Losses Following International Financial Crises Be Avoided?
-
Defaultable Debt, Interest Rates and the Current Account
By Mark Aguiar and Gita Gopinath
-
Defaultable Debt, Interest Rates, and the Current Account
By Mark Aguiar and Gita Gopinath
-
Have Commercial Banks Ignored History?
By Sule Ozler