Governments sometimes need to restructure their debts. Otherwise, a country’s economic and political stability may be threatened. But, in the absence of an international rule of law for resolving sovereign defaults, the world pays a higher price than it should for such restructurings. The result is a poorly functioning sovereign-debt market, marked by unnecessary strife and costly delays in addressing problems when they arise. Read more here
A Rule of Law for Sovereign Debt, by J.E. Stiglitz and M.Guzman
Sourced from our Editorial Partner Project Syndicate - Jun 15, 15
