Private Capital Flows and Developing Country Adjustment: Some Lessons of the Debt Crisis
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.
KeywordsForeign Currency Trade Credit Debt Crisis Negative Transfer Debt Service
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