Adjustment, inflation, investment

.

Chapter 6 in The Debt Crisis of the 1980s, 2023, pp 147-166 from Edward Elgar Publishing

Abstract: Chapter 6 deals with the economics of over-indebtedness (the so-called ‘transfer problem’), the economic strategies that were adopted over the course of the decade and, in particular, the key dilemma that emerged circa 1985: whereas most countries had made consistent efforts to re-balance their economy, they did not regain independent access to capital markets, and neither growth nor investment recovered. The ensuing economic debate focused in particular on the theory of a ‘debt overhang’, defended by Jeffrey Sachs and Paul Krugman. This analysis proved highly influential within the IMF and in the broader international policy debate. Moreover, at the same time as economists were arguing ever more strongly in favour of write-offs, the development of a secondary market for the same loans confirmed their message: falling prices indicated ever more clearly that the banks themselves did not expect that they would be repaid in full.

Keywords: Economics and Finance; Law - Academic; Politics and Public Policy (search for similar items in EconPapers)
Date: 2023
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://www.elgaronline.com/doi/10.4337/9781839103636.00013 (application/pdf)
Our link check indicates that this URL is bad, the error code is: 503 Service Temporarily Unavailable

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:elg:eechap:19593_6

Ordering information: This item can be ordered from
http://www.e-elgar.com

Access Statistics for this chapter

More chapters in Chapters from Edward Elgar Publishing
Bibliographic data for series maintained by Darrel McCalla ().