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Working Paper
Macroeconomic instability of the less developed country economy when bank credit is rationed
During the early 1980s, many less developed countries (LDCs) experienced a phenomenon which is not readily explicable using conventional macroeconomic theory: accelerating inflation coupled with output contraction. Moreover, arguments based on supply shocks do not adequately explain the performance of the LOCs over this period. In explaining the apparent anomaly of accelerating inflation coupled with output contraction, the model developed here assigns an important role to the availability of bank credit. ; In many LDCs, the government fixes interest rates on bank deposits and loans. If rates ...
Journal Article
LDC debt rescheduling: calculating who gains, who loses
Journal Article
The costs of default and international lending
An examination of the costs and benefits of LDC external debt default, with a discussion of the implications for the future of international lending.
Working Paper
Debt conversions: economic issues for heavily indebted developing countries
This paper is a general discussion of debt conversions in heavily indebted developing countries. The paper first describes the three different types of transactions that are commonly called debt conversions. Next the paper discusses programs that have been established in Chile, Brazil, Mexico, Argentina, and the Philippines to facilitate these transactions. Then the different ways in which commercial banks can participate in these transactions and the volume of these transactions to date are discussed. The paper concludes with a discussion of a broad range of economic issues raised by these ...