ABSTRACT
The recent spate of financial crises in emerging market economies has focused attention on the importance of improving the international framework for crisis management. In a recent speech, Krueger (2001) makes the case for a ‘new’ global approach to sovereign debt restructuring involving the International Monetary Fund (IMF), and calls for a framework analogous to corporate insolvency regimes like the US bankruptcy court. In Europe and Canada, the merits of sovereign debt standstills and other policy measures that target shortterm debt are currently topics of hot debate. And in East Asia, concerted efforts are being made to create stronger regional financial arrangements to deal with temporary liquidity shortfalls.
