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Has the Market Solved the Sovereign-Debt Crisis?

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  • Bowe, M.
  • Dean, J.W.

Abstract

Since the beginning of the developing-country debt crisi in mid-1982, economists have puzzled iver its origins. Why did market forces not dater creditors from lending and debtors from borrowing so very much more than could, in retrospect, be repaid? Moreover, once the crisis was under way, why were market forces apparently unable to resolve it on their own? Why was nonmarket intervention employed? Was such intervention rational on ex ante theoretical grounds? Was it justifiable on ex post empirical grounds?

Suggested Citation

  • Bowe, M. & Dean, J.W., 1997. "Has the Market Solved the Sovereign-Debt Crisis?," Princeton Studies in International Economics 83, International Economics Section, Departement of Economics Princeton University,.
  • Handle: RePEc:fth:prinfi:83
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    Cited by:

    1. Bordo, Michael D. & Schwartz, Anna J., 2000. "Measuring real economic effects of bailouts: historical perspectives on how countries in financial distress have fared with and without bailouts," Carnegie-Rochester Conference Series on Public Policy, Elsevier, vol. 53(1), pages 81-167, December.
    2. Beoy Kui Ng & Andreas Thorud, 2006. "China’s “Triangle of Woes” and Its Impact on Financial Stability," Economic Growth Centre Working Paper Series 0605, Nanyang Technological University, School of Social Sciences, Economic Growth Centre.
    3. James Dean, 1998. "Why Left-Wing Moralists and Right-Wing Academics Are Wrong about Asia," Challenge, Taylor & Francis Journals, vol. 41(2), pages 44-60, March.
    4. Buch, Claudia M. & Ralph P., Heinrich & Engerer, Hella & Lodahl, Maria & Schrettl, Wolfram & Schrooten, Mechthild & Gabrisch, Hubert & Linne, Thomas & Sigmund, Peter, 1999. "Die wirtschaftliche Lage Rußlands: Wachstumsperspektive fehlt weiterhin, Schuldenerlaß keine Lösung. Fünfzehnter Bericht," Kiel Discussion Papers 355, Kiel Institute for the World Economy (IfW Kiel).
    5. Claudia M. Buch & Ralph P. Heinrich & Lusine Lusinyan & Mechthild Schrooten, 2000. "Russia's Debt Crisis and the Unofficial Economy," Discussion Papers of DIW Berlin 208, DIW Berlin, German Institute for Economic Research.

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    More about this item

    Keywords

    EXTERNAL FINANCING ; DEBT ; MACROECONOMICS;
    All these keywords.

    JEL classification:

    • F34 - International Economics - - International Finance - - - International Lending and Debt Problems
    • H63 - Public Economics - - National Budget, Deficit, and Debt - - - Debt; Debt Management; Sovereign Debt

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