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International Capital Flows and the World Debt Problem

In: Economic Policy in Theory and Practice

Author

Listed:
  • Rudiger Dornbusch
  • Stanley Fischer

Abstract

In 1983 the debt problems of developing countries, especially Latin America’s problems, appeared on the way to a solution. Despite the strains following first the Polish and then major Latin American borrower difficulties, the international financial system did not collapse. Moratoria quickly gave way to IMF adjustment programmes and debt rescheduling that provided the debtors with a way of avoiding default and meeting debt service liabilities by borrowing fresh money from the banking system.

Suggested Citation

  • Rudiger Dornbusch & Stanley Fischer, 1987. "International Capital Flows and the World Debt Problem," Palgrave Macmillan Books, in: Assaf Razin & Efraim Sadka (ed.), Economic Policy in Theory and Practice, chapter 6, pages 211-254, Palgrave Macmillan.
  • Handle: RePEc:pal:palchp:978-1-349-18584-9_6
    DOI: 10.1007/978-1-349-18584-9_6
    as

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