Responsible Asset Owners Global Symposium

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The renewed case for a sovereign debt restructuring mechanism

The sovereign debt crises threatening states in the Global South are less about fiscal mismanagement and more about monetary power in the global currency hierarchy, and until that issue is addressed, these states will continue to be vulnerable to debt crises and their punishing consequences. In the absence of a fundamental change in the geopolitics of global money, an equitable shorter-term mechanism is the needed to stave off a new wave of sovereign debt crises.