Roque Fernandez has provided an illuminating and provocative view of the causes of, and potential solutions to, financial crises, both internal and external, in less developed countries (LDCs). His key point, as I understand it, is that unless the value of the financial claims in an economy can and are allowed to adjust to changes in the (present) value of real assets, the system will explode. Although he makes his argument in the context of the bank failures experienced in Argentina during 1984, it is a much broader one that deserves greater recognition and deeper treatment in analyses of LDC finances.


Real Interest Rate Monetary Authority Foreign Exchange Market Bank Failure Real Asset 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.


Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

Copyright information

© Paolo Savona and George Sutija 1990

Authors and Affiliations

  • Donald Lessard

There are no affiliations available

Personalised recommendations