Discussion Paper

No. 2009-39 | August 28, 2009
Commercial Banks, Default Insurance and IMF Reforms
(Submitted as Policy Paper)

Abstract

This paper discusses, in a very general way, a system of IMF insurance against sovereign default that could be offered to private lenders and banking groups. The system could overcome many of the current issues that plague the international private lending market, such as moral hazard on the part of private lenders, capital flight, and so on. How the insurance could be priced is also discussed in an appendix. Private lender membership in the IMF is also discussed. This would provide the IMF with some of the powers that central banks now have.

Paper submitted to the special issue Global Governance—Challenges and Proposals for Reform

JEL Classification

F33 F34

Cite As

Duane W. Rockerbie and Stephen T. Easton (2009). Commercial Banks, Default Insurance and IMF Reforms. Economics Discussion Papers, No 2009-39, Kiel Institute for the World Economy. http://www.economics-ejournal.org/economics/discussionpapers/2009-39

Assessment



Comments and Questions


Anonymous - Referee Report 1
September 11, 2009 - 09:06

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Anonymous - Referee Report 2
September 16, 2009 - 10:03

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Anonymous - Invited Reader Comment
September 23, 2009 - 11:30

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Anonymous - Invited Reader Comment
September 29, 2009 - 11:49

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Anonymous - Invited Reader Comment
October 09, 2009 - 11:59

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Anonymous - Invited Reader Comment
October 30, 2009 - 11:01

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