The debt crisis: a re-appraisal

Carlos Alberto Cinquetti ()

Brazilian Journal of Political Economy, 2005, vol. 25, issue 3, 209-223

Abstract: The 1980s’ debt crisis is a landmark in developing economies’ growth and stabilization. According to the most quoted empirical articles, external shocks and vicissitudes gave rise to crisis just because of delays in stabilization policies, engendered by internal conflicts and institutional immaturity. I review some of these papers, and find out some problems – in the measurement of shocks and foreign indebtedness, namely - whose corrections lead to opposite results: external shocks and foreign indebtedness explain that crisis regardless of domestic policies. At the same time, the strong correlation of income distribution to terms of trade changes and foreign indebtedness suggest that inequality may have contributed differently to that crisis: either through an economic channel, or through a political channel based on delays in reforms. JEL Classification: F34; F42; E61; 011; 057.

Keywords: External Shocks; Indebtedness; Debt Crisis; Stabilization Policies; Trade Protection; Political Economy (search for similar items in EconPapers)
Date: 2005
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://centrodeeconomiapolitica.org.br/repojs/ind ... article/view/639/636 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ekm:repojs:v:25:y:2005:i:3:p:209-223:id:639

Access Statistics for this article

More articles in Brazilian Journal of Political Economy from Center of Political Economy
Bibliographic data for series maintained by Brazilian Journal of Political Economy (Brazil) ().