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Two new adjustment issues for high-debt countries : interest rate shock and private sector's external debt (英语)

The emphasis in this paper is on certain issues unique to the high-debt situation. Many countries in the late 1970's and early 1980's faced excess demand shocks, terms of trade shocks and supply shocks, on which a certain body of theoretical literature exists. In addition, high debt countries were affected by an international interest rate shock and a general contraction in the supply of external financing. The first part of this paper discusses the...
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