Ashoka Mody, Columnist

Making Argentina's Debt Debacle a Rarity

If sovereign bonds acted more like stocks, everyone would be better off.

October 2, 2014 at 1:03 PM UTC

Ashoka Mody is a visiting professor in international economic policy at Princeton University. Previously, he was a deputy director at the International Monetary Fund's research and European departments. He is the author of "EuroTragedy: A Drama in Nine Acts."

Provide news feedback or report an error

Site feedback:

Take our Survey

This article is for subscribers only.

The epic battle between Argentina and a group of U.S. hedge funds illustrates a fundamental flaw in the sovereign bond market: There's no orderly, well-established way for financially troubled governments to get relief from their creditors.

The best solution is to design the bonds so they act more like stock.