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van Wijnbergen, S.J.G. and Claessens, C. (1993). Secondary market prices and Mexico's Brady Deal Quarterly Journal of Economics, 108(nov):965--983.


  • Journal
    Quarterly Journal of Economics

Analyzes wether or not the use of official funds in debt reduction packages as in Mexico's 1989 Brady deal is tantamount to a creditor bailout. Review of events; option-pricing approach to sovereign debt valuation; market valuation of the Brady debt package; positive impact of Brady plan on debt relief.