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International Policy Coordination: The Case of the Developing Country Debt Crisis

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  • Jeffrey D. Sachs

Abstract

This paper reviews the management of the debt crisis to date, and considers several possible alternative approaches for international cooperation in the future. The first part of the paper briefly reviews the scope of the crisis, and some of the reasons for its onset. Then, the paper describe the internationally coordinated policy responses to the crisis, as well as the conceptual underpinnings of this coordinated response. In the latter part of the paper, some of the reasons for the incomplete success of the policy response are described, and several alternative measures for the future are discussed. The discussion emphasizes the possible merits of debt forgiveness in addition to debt reschedulings as an instrument for the future management of the debt crisis.

Suggested Citation

  • Jeffrey D. Sachs, 1987. "International Policy Coordination: The Case of the Developing Country Debt Crisis," NBER Working Papers 2287, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:2287
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    1. Rudiger Dornbusch, 1985. "Policy and Performance Links between LDC Debtors and Industrial Nations," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 16(2), pages 303-368.
    2. Eichengreen, Barry & Portes, Richard, 1986. "Debt and default in the 1930s : Causes and consequences," European Economic Review, Elsevier, vol. 30(3), pages 599-640, June.
    3. Martin Feldstein, 1986. "International Debt Service and Economic Growth: Some Simple Analytics," NBER Working Papers 2076, National Bureau of Economic Research, Inc.
    4. Steven C. Kyle & Jeffrey Sachs, 1984. "Developing Country Debt and the Market Value of Large Commercial Banks," NBER Working Papers 1470, National Bureau of Economic Research, Inc.
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    1. Rudiger Dornbusch, 1989. "Debt Problems and the World Macroeconomy," NBER Chapters, in: Developing Country Debt and the World Economy, pages 299-312, National Bureau of Economic Research, Inc.
    2. Friesenbichler, Klaus S. & Glocker, Christian, 2019. "Tradability and productivity growth differentials across EU Member States," Structural Change and Economic Dynamics, Elsevier, vol. 50(C), pages 1-13.
    3. Gérald Collange & François Guillaumat-Taillet, 1987. "Une projection à moyen terme de la dette des pays en développement débiteurs de la France," Revue de l'OFCE, Programme National Persée, vol. 21(1), pages 153-190.
    4. Bertsch, Christoph & Hull, Isaiah & Lumsdaine, Robin L. & Zhang, Xin, 2022. "Central Bank Mandates and Monetary Policy Stances: through the Lens of Federal Reserve Speeches," Working Paper Series 417, Sveriges Riksbank (Central Bank of Sweden), revised 01 Mar 2024.
    5. Abdoul’ Ganiou Mijiyawa & Djoulassi K. Oloufade, 2023. "Effect of Remittance Inflows on External Debt in Developing Countries," Open Economies Review, Springer, vol. 34(2), pages 437-470, April.
    6. Spagnolo, G., 1999. "Issue Linkage, Delegation, and International Policy Cooperation," Cambridge Working Papers in Economics 9913, Faculty of Economics, University of Cambridge.
    7. Abdoul' Ganiou Mijiyawa, 2022. "External debt in developing countries since HIPC and MDRI: What are the driving factors?," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 27(2), pages 1683-1699, April.

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