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The Political Economy of Debt Repudiation and Expropriation in LDCs

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Monetary Theory and Policy

Part of the book series: Studies in Contemporary Economics ((CONTEMPORARY))

Abstract

The LDC debt crisis of the 1980s has mainly been analyzed in terms of the debt-servicing capacity of the major debtor countries, while sovereign risk considerations played only a relatively minor role. In this analysis an attempt is made to address the debt crisis primarily from the sovereign-risk perspective. A dramatical increase of solvency problems from the early 1980s onwards is diagnosed and explained as a counter-intentional consequence of the implementation of cross-default clauses in LDC banking which reduced sovereign risks and made them more manageable. In what follows the basic concept of sovereign risk is described before the main thrust of the analysis is outlined at some length.

The author gratefully acknowledges the very efficient research assistance by Angela Husfeld.

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Authors and Affiliations

  1. Institut für Weltwirschaft, The Kiel Institute of World Economics, Düsternbrooker Weg 120, PO Box 4309, 2300, Kiel R.F.A., Germany

    Hartmut R. Picht

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  1. Hartmut R. Picht
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Editors and Affiliations

  1. Faculty of Economics, University of Aix-Marseille II, 13621, Aix en Provence, Cedex, France

    Didier Laussel (Professor of Economics) & Antoine Soubeyran (Professor of Economics) (Professor of Economics) &  (Professor of Economics)

  2. Faculty of Economics, University of Orleans, BP 6749, 45067, Orleans, Cedex 2, France

    William Marois (Professor of Economics) (Professor of Economics)

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Picht, H.R. (1988). The Political Economy of Debt Repudiation and Expropriation in LDCs. In: Laussel, D., Marois, W., Soubeyran, A. (eds) Monetary Theory and Policy. Studies in Contemporary Economics. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-74104-3_14

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  • DOI: https://doi.org/10.1007/978-3-642-74104-3_14

  • Publisher Name: Springer, Berlin, Heidelberg

  • Print ISBN: 978-3-540-50322-4

  • Online ISBN: 978-3-642-74104-3

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