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Distributional aspects of debt adjustment (الإنجليزية)

The report explores how the formulation of debt repayment policies can be affected by the nature of the decisionmakers and the strength of various interest groups. The authors argue that small penalties can be enough to deter default if they hurt the interests of groups that are closely associated with policymakers, especially when the costs of debt service can be shifted to groups with less influence on decisionmaking. The authors' analysis indicates...
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