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Begin New Search Political Geography Global Focus Author James A. Haley

1. Fiscal Space: What Is It? Who Has It? When to Use It?

Author:
James A. Haley
Publication Date:
08-2018
Content Type:
Working Paper
Institution:
Centre for International Governance Innovation
Abstract:
This paper reviews the concept of fiscal space, or the capacity to deploy fiscal stimulus should it be needed; identifies the key factors that determine its size; and discusses considerations relevant to its use. The paper is motivated by the remarkably rapid mobilization of fiscal stimulus in the 2008-2009 global financial crisis, coordinated by the International Monetary Fund (IMF), which was followed by the equally remarkable rapid adoption of austerity in key advanced economies. This switch from stimulus to austerity occurred despite the languid pace of the global recovery, in which growth was, as subsequently described by IMF Managing Director Christine Lagarde, “too low, for too long.” At the time, the change was justified in terms of concerns over large debt burdens and diminished capacity for future action. Curiously, however, the principled voices defending the interests of future generations were silent with respect to more recent tax cuts and the adoption of higher budgeted spending.
Topic:
Budget, Fiscal Policy, IMF, and Stimulus
Political Geography:
Global Focus

2. The Evolution of Bonding Technology, Creditor Committees and the IMF

Author:
James A. Haley
Publication Date:
04-2016
Content Type:
Working Paper
Institution:
Centre for International Governance Innovation
Abstract:
This paper reviews a range of issues associated with proposals for creditor engagement clauses (CECs) in sovereign bond contracts. CECs have moved onto the international policy agenda in the wake of the recent introduction of model “second-generation” collective action clauses (CACs) designed to address problems highlighted by the protracted litigation between Argentina and its holdout creditors. Speci cally, the new CACs should limit the ability of holdout creditors to impede restructurings acceptable to a supermajority of creditors and address the problematic interpretation of pari passu language that has plagued the Argentina debt restructuring. However, the introduction of these clauses, building on the foundation laid a decade ago by Mexico’s innovation of rst-generation CACs, has led some observers to express concerns that the sovereign debt restructuring playing eld has become “tilted” to the bene t of sovereign borrowers. Recent contractual innovations should be balanced, these experts contend, with CECs requiring sovereign issuers to convene and negotiate with creditor committees.
Topic:
International Security and Digital Economy
Political Geography:
Global Focus