How the Brady Plan Delivered on Debt Relief : Lessons and Implications (Cambridge Elements in International Economics)

Shenai, Neil/ Bolhuis, Marijn A.

Cambridge University Press（2026/02発売）

• 製本 Hardcover:ハードカバー版／ページ数 75 p.
• 言語 ENG
• 商品コード 9781009747400
• DDC分類 336.3435091724

Full Description

In March 1989, US Treasury Secretary Nicholas Brady introduced a plan enabling distressed sovereigns to restructure unsustainable debts through 'Brady bonds.' Today, growing debt vulnerabilities have prompted calls for a modern Brady Plan to facilitate sovereign debt restructurings. This Element examines the macroeconomic impact of the original Brady Plan by comparing outcomes for ten Brady countries against forty other emerging markets and developing economies. It finds that following the first Brady-led restructuring in 1990, participating countries saw reductions in public and external debt burdens, alongside output and productivity growth anchored by strong economic reforms. The analysis reveals the existence of a 'Brady multiplier,' where declines in overall debt burdens exceeded initial face-value reductions. While similar mechanisms could again deliver substantial debt stock reductions during acute solvency crises, Brady-style solutions alone would not address current challenges related to creditor coordination, domestic reform barriers, and the rise of domestic debt, among others.

Contents

1. Introduction; 2. Review of the literature and an overview of debt and debt restructuring; 3. The 1980s: a decade of sovereign stress; 4. Analyzing the macroeconomic impact of the Brady plan; 5. Policy implications; 6. Conclusions; Appendix: Brady options: then and now; References.