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Protectionism and the Debt Crisis

In: Global Macroeconomics: Policy Conflict and Cooperation

Author

Listed:
  • Sweder Wijnbergen

    (World Bank
    CEPR)

Abstract

Macroeconomic problems in the world economy are, from a developing country’s point of view, dominated by the twin problems of debt and protectionism. Earlier papers on North-South interactions (Dornbusch, 1985; Sachs and McKibbin, 1985; van Wijnbergen, 1985a, b) focused on the impact of Northern trade and fiscal policies on world real interest rates and hence on the burden of Southern debt. In this paper, I take the transfer the South needs to make to the North on principal and debt service as given; instead the focus is on how trade policy in the North exacerbates the problem of effecting that transfer.

Suggested Citation

  • Sweder Wijnbergen, 1987. "Protectionism and the Debt Crisis," International Economic Association Series, in: Ralph C. Bryant & Richard Portes (ed.), Global Macroeconomics: Policy Conflict and Cooperation, chapter 9, pages 307-337, Palgrave Macmillan.
    • Handle: RePEc:pal:intecp:978-1-349-18916-8_9
    DOI: 10.1007/978-1-349-18916-8_9
    as

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