Book review: rethinking sovereign debt: politics, reputation and legitimacy in modern finance by Odette Lienau

Rethinking Sovereign Debt explores how sovereign debt continuity – the rule that nations should repay loans even after a major regime change, or expect reputational consequences – became the consensus approach. Odette Lienau contends that the practice is not essential for functioning international capital markets and demonstrates how it relies on ideas of absolutist government that have come under fire over the last century. Despite some shortcomings this remains an interesting, highly readable, and convincingly argued book about the norms that govern sovereign debt, writes Lauren M. Phillips. Lienau has made an important contribution to the literature on sovereign debt, adding nuance to existing studies in international political economy and related disciplines.