Debt Sustainability, Brazil, and the IMF

Working Paper
03-1
February 2003

Morris Goldstein analyzes the role of excessive external and domestic debt in the economic problems of Latin America in general and Brazil in particular. He then advises the Lula government on what its next steps should be to reduce its vulnerability to a debt crisis and advises the IMF on how to alter its surveillance and conditionality to prevent future debt crises in emerging economies.