Abstract
Country risk stands out in today’s global financial system for several reasons. It is perceived to be a major threat to the system’s stability, more so than virtually any other single category of risk. It also is perceived to follow different rules than most other types of risks, and hence to require different institutional approaches. This is reflected in the specialization of particular institutions in bearing country risk, the important risk mitigating role of multilateral institutions or arrangements, including the International Monetary Fund, the World Bank, and the Paris Club, and the lack of specialized markets for laying off this risk.
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Lessard, D.R. (1989). Country Risk and the Structure of International Financial Intermediation. In: Stone, C.C. (eds) Financial Risk: Theory, Evidence and Implications. Springer, Dordrecht. https://doi.org/10.1007/978-94-009-2665-3_11
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DOI: https://doi.org/10.1007/978-94-009-2665-3_11
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