Any comments?

DANIEL.DAVIES at flemings.com DANIEL.DAVIES at flemings.com
Wed Apr 12 09:48:39 PDT 2000



>>Brad De Long wrote:
>
>>
>>
>>> Touche...
>>
>>> But if you hit the wall, and if there's no IMF to loan you anything,
>>> then what do you do? You have your freedom of action, you just have
>>> no money to pay for your imports...
>>
>
>>You default. Or threaten to do so and pay x cents on the dollar.


>As I said, the big problem is the flow, not the stock: you need money
>to pay for your current imports...

Then default on the stock, but maintain payment on trade credits, or even on new borrowing. It's perfectly possible to make new borrowings senior to old, unless someone is acting to support a creditors' cartel . . . .which makes me think that the case for getting rid of the IMF may be stronger than I thunk.

dd

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