Is an international lender welfare enhancing?

This Central Bank of Chile working paper examines the role of an extra lender in the international markets - such the IMF or another similar institution. The authors suggest that the existence of such a lender "is not beneficial from a welfare standpoint."

The authors suggest that "there is neither a clear answer nor a consensus about [the] welfare consequences" on an international lender: "On the one hand, it is argued that the moral hazard consequences of an extra lender could be strong enough

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