Has the Market Solved the Sovereign-Debt Crisis?

M. Bowe and J.W. Dean

Princeton Studies in International Economics from International Economics Section, Departement of Economics Princeton University,

Abstract: Since the beginning of the developing-country debt crisi in mid-1982, economists have puzzled iver its origins. Why did market forces not dater creditors from lending and debtors from borrowing so very much more than could, in retrospect, be repaid? Moreover, once the crisis was under way, why were market forces apparently unable to resolve it on their own? Why was nonmarket intervention employed? Was such intervention rational on ex ante theoretical grounds? Was it justifiable on ex post empirical grounds?

Keywords: EXTERNAL FINANCING; DEBT; MACROECONOMICS (search for similar items in EconPapers)
JEL-codes: F34 H63 (search for similar items in EconPapers)
Pages: 70 pages
Date: 1997
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

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Persistent link: https://EconPapers.repec.org/RePEc:fth:prinfi:83

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