Czerkawski Theoretical and Policy-Oriented Aspects of the External Debt Economics

Erscheinungsjahr 2012
ISBN: 978-3-642-84549-9
Verlag: Springer
Format: PDF
Kopierschutz: 1 - PDF Watermark

E-Book, Englisch, 150 Seiten, eBook

Reihe: Studies in Contemporary Economics

The past approach to the international debt crisis has been traditionally based on conventional banking principle in which debt had to be paid back in fuH and in time. International lending was a function of the perceived credit standing of debtor country and the return on investment (ROI). If debtor country run into difficulties and had problems with service payments - it was generally assumed that the debt-related expenditures were mismanaged. With economic stability and firm financial rules - the debt crisis was supposed to disappear after application of appropriate adjustment measures. However in the world of inconsistent lending criteria greater uncertainty and increased volatility of expectations - the problem has continued to get worse. At the beginning of the 1990s a number of countries are more indebted than at any other time in the past. Until mid 1980s extern al debt economics has been rather a disembodied concept for most economists and business leaders. The main reason for this neglect of one of the most important macroeconomic categories was difficulty of distinguishing terminologically and methodologically the domestic determinants of national expenditures from the external ones. Then there were conceptual problems in distinguishing the functional determinants of macroeconomic liquidity from external and domestic determinants of macro-economic solvency. Moreover many studies of the debt crisis were one-sided. Usually debt was seen as a 'white-black' phenomenon with debtor countries accusing creditor countries for causing the crisis and vice versa.

Zielgruppe

Research

Autoren/Hrsg.

Czerkawski, Chris

Inhaltsverzeichnis

I: An Overview of the Theoretical Aspects of Foreign Debt.- 1. Measuring External Debt.- 2. Macroeconomics of External Debt.- 3. Creditworthiness and Country Risk.- 4. Economics of Default.- 5. Optimal and Non-Optimal Debt.- II: Policy Responses to the International Debt Crisis.- 6. Analytical Issues in the Current External Debt Strategy.- 7. Debt Relief Techniques.- 8. In Search for a New Debt Strategy — Plans for Reform of International Lending and Contingency Proposals.- 9. Managing the International Debt Crisis — Components of the New Debt Strategy.