Abstract
It is not realistic to expect even middle-income debtors fully to service their debt. The combined operation of a high stock of debt, high real interest rates, compound interest and negligible new private capital flows make orthodox adjustment exceptionally severe. The debt crisis is far from being resolved.
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Reference
Salomon Bros, quoted in World Bank’s World Debt Tables, volume 1, 1987—88 edition, Washington DC.
Sanjay Dhar in Federal Reserve Bank of New York Quarterly Review, Autumn 1983, volume 8, No. 3.
United Nations Conference on Trade and Development; Trade and Development Report 1985, Geneva p. 5.
Debt and Danger: the World Financial Crisis by Harold Lever and Christopher Huhne, Penguin, London, 2nd edition, 1987.
Mario Henrique Simonsen, “The Developing Country Debt Problem” in G. Smith and J. Cuddington (eds) International Debt and the Developing Countries, World Bank, Washington DC, 1985.
See for a discussion of the lack of legal remedies: Anatole Kaletsky, The Cost of Default, Twentieth Century Fund paper, Priority Press publications, New York, 1985.
J. M. Keynes, The General Theory, p. 156, Macmillan edition for the Royal Economic Society, 1973.
Tim Congdon, The Debt Threat, Blaekwells, Oxford, 1988.
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© 1989 Kluwer Academic Publishers
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Huhne, C. (1989). Private Capital Flows and Developing Country Adjustment: Some Lessons of the Debt Crisis. In: Fair, D.E., de Boissieu, C. (eds) The International Adjustment Process. Financial And Monetary Policy Studies, vol 17. Springer, Dordrecht. https://doi.org/10.1007/978-94-009-0871-0_19
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DOI: https://doi.org/10.1007/978-94-009-0871-0_19
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