01564cas a2200241 a 4500 AALejournalIMF007934 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451920758 1018-5941 BD-DhAAL BD-DhAAL Husain, Aasim. Sovereign Debt Relief Schemes and Welfare / Aasim Husain. Washington, D.C. : International Monetary Fund, 1992. 1 online resource (20 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students This paper shows that concerted debt reduction may be welfare-improving even when the investment disincentive effect of a debt overhang is not large enough to place the debtor country on the wrong side of the debt Laffer curve. Whether the appropriate relief scheme involves debt reduction or new money, however, depends on whether investment disincentives or liquidity constraints dominate. It is shown that, except under very special circumstances, mixed policy packages involving both debt and liquidity relief may not yield the desired results. Mode of access: Internet IMF Working Papers; Working Paper ; No. 1992/025 Full text available on IMF http://elibrary.imf.org/view/journals/001/1992/025/001.1992.issue-025-en.xml IMF e-Library