What if we hit Another Sudden Stop?

The sovereign debt markets hit a sudden stop in March 2020, where new funding to emerging market sovereigns ceased and, instead, capital rushed out. There was a very real risk of multiple sovereign defaults. Thanks to the steps taken by institutions like the US Fed and the ECB to flood the markets with money, funding for many emerging market sovereigns has resumed. But real economic activity continues to slow and the prospect of another sudden stop is real. To discuss what might be done to mitigate the cost if this were to happen, our guests are financial and international economics gurus Patrick Bolton and Ugo Panizza, of Columbia University (NY) and the Graduate Institute (Geneva) respectively.

Producer: Leanna Doty