Bailouts or Bail-Ins?
Roughly once a year, the finance minister of a large market economy will indicate that the country is rapidly running out of foreign reserves, that it has lost access to international capital markets. Without a rescue loan, it will be forced to devalue its currency and default either on its government debt or on loans to the country's banks that the government has guaranteed. Bailouts or Bail-Ins looks at these situations and the options available to alleviate the problem. It argues for a policy that recognizes that every crisis is different and that different cases need to be handled within a framework that provides consistency and predictability to borrowing countries as well as those who invest in their debt.
Praise for Bailouts or Bail-Ins
"Bailouts or Bail-ins is masterful. It is by far the best book written in recent years on the vexing subject of how the international community should address the international financial crises of emerging market economies."
— Jeffrey D. Sachs, Director of the Earth Institute, Columbia University
"Bailouts or Bail-ins will prove to be a useful tool for those confronting these crises, and a clear, accessible overview for those studying global markets."
— Lawrence H. Summers, President, Harvard University and Former U.S. Treasury Secretary
"This is the most intelligent and comprehensive analysis yet of how the international community should respond to financial crises. It will be the definitive work on this subject for some time to come."
— Barry Eichengreen, George C. Pardee and Helen N. Pardee Professor of Economics and Political Science, University of California, Berkeley