Dealing with Debt: How to Reform the Global Financial System
Something is wrong with the global financial system. One might think the system would shift money from rich countries, where capital is in abundance, to those where it is scarce, while transferring risk from poor countries to rich ones, which are most able to bear it. A well-functioning global financial system would provide money to countries in their times of need, thereby contributing to global economic stability. Through an orderly bankruptcy procedure, a well-functioning global financial system would grant a fresh start to those who cannot meet their debt obligations, giving creditors incentives to pursue good lending practices, while ensuring that borrowers able to repay loans do so.
Source: Harvard International Review
Stiglitz, Joseph. "Dealing with Debt: How to Reform the Global Financial System." Harvard International Review 25, no. 1 (Spring 2003): 54-59.