CHAPTER OUTLINE: CHAPTER 15 FOREIGN DEBT & …
Long run equilibrium ratio of debt to GDP is . D/Y= (v-s)/(gy-i) A country with poor overall economic performance reflected in low export GDP growth is more in trouble than that one that performs well. 4. from Distress to Default . Defaults occur in all countries. An example of Lending default is Citicorp in 1979 (Box 15.1) The 1980s Debt Crisis ................
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