Latin American Debt, US Role in the Transmission of North-South Linkages, and World Trade
This paper extends the boundaries of interdependence analysis beyond the basic North-South or North-North foci to a more global South-North-North perspective. In particular, it focuses on the implications of the Latin American debt crisis for the US economy and US economic policies, and how these in turn affect US affairs with Europe as well as its other OECD partners. Despite the limited direct economic interaction between Latin America and Europe, for example, it will be shown that events and policies in Latin America can have significant impacts on Europe through linkages with the US economy.
KeywordsMonetary Policy Real Exchange Rate Real Interest Rate Commodity Price Trade Balance
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