TY  - JOUR
AU  - Bulow,Jeremy I.
AU  - Rogoff,Kenneth
TI  - Sovereign Debt:  Is To Forgive To Forget?
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 2623
PY  - 1988
Y2  - June 1988
UR  - http://www.nber.org/papers/w2623
L1  - http://www.nber.org/papers/w2623.pdf
N1  - Author contact info:
Jeremy I. Bulow
Stanford University
Graduate School of Business
Stanford, CA  94305-7298
Tel: 650/723-2160
Fax: 650/725-8916
E-Mail: jbulow@stanford.edu

Kenneth S. Rogoff
Thomas D Cabot Professor of Public Policy
Economics Department
Harvard University
Littauer Center 216
Cambridge, MA 02138-3001
Tel: 617-495-4022
Fax: 617/495-7730
E-Mail: krogoff@harvard.edu
AB  - International lending to a less-developed country cannot be based on the debtor's reputation for making repayments. That is, loans to LDCs will not be made or repaid unless foreign creditors have legal or other direct sanctions they can exercise against a sovereign debtor who defaults Even if some lending is feasible because of direct sanctions, having a reputation for repayment in no way enhances a small LDC's ability to borrow.
ER  -