01880cas a2200301 a 4500 AALejournalIMF010113 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451977899 1018-5941 BD-DhAAL BD-DhAAL International Monetary Fund. A Noteon Debt Reduction and Echonomic Efficiency. Washington, D.C. : International Monetary Fund, 1990. 1 online resource (8 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 note examines the efficiency gains that might result from market-based debt reduction and alternative uses of resources. It is argued that when a country's expected output falls short of contractual claims on that output, private investment is drawn to activities that protect the investors' share of future output at the expense of activities that increase future output. Resources provided by a third party could reduce this gap through market-based debt reduction or by supporting government investment or consumption. Given considerable uncertainty about the efficiency returns of alternative uses of resources, it seems likely that an optimal strategy would include both debt reduction and government investment. Mode of access: Internet Debt imf Investment imf Market imf Return imf WP imf IMF Working Papers; Working Paper ; No. 1990/036 Full text available on IMF http://elibrary.imf.org/view/journals/001/1990/036/001.1990.issue-036-en.xml IMF e-Library