Pre-Game Show (Terms worth knowing) GDP: Gross Domestic Product HDI: Human Development Index ISI: Import-Substituting Industrialization FDI: Foreign Direct.

Slides:



Advertisements
Similar presentations
Copyright © 2011 Pearson Addison-Wesley. All rights reserved. Chapter 15 Trade and Policy Reform in Latin America.
Advertisements

Copyright © 2009 Pearson Addison-Wesley. All rights reserved. Chapter 13 Balance of Payments, Developing-Country Debt, and the Macroeconomic Stabilization.
1980’s debt crisis In the aftermath of the 1973 oil shock, many commercial banks suddenly found themselves with sizeable amounts of funds deposited by.
Indebted in Latin America Carlos Vigil Cruz, Sarah Kearns, Wendy Loveland, Armondo Tautiva.
Brazil What is Balance of P. C.  When a country that has a large budget deficit, it has difficulty maintaining a fixed exchange rate, ultimately.
Latin America Debt Crisis. Prelude  To finance ISI Latin American countries borrowed from international markets  Nations were betting on investment.
Latin America and the Debt Crisis Michael Henderson Paula Ramko Lance Gomes Ildiko Kiss.
Budget Deficits and the National Debt Basics about Deficits  National debt: total amount owed by government  Budget deficit : government spending minus.
1 Lecture 18 Don DeVoretz Trade as an “Engine of Growth’ Some Best and Worst Practices?
Latin American Crisis of the 1980s “The Lost Decade” Econ. 462 Nov. 24, 2009 Edward Kulow John Magallanes Yojasi Lomas.
Poverty and Development. Addressing Poverty and Inequality Socialism and Communism -Redistribution of assets, equality, state control State sheltered.
C HAPTER 17 FIXED EXCHANGE RATES AND FOREIGN EXCHAGNE INTERVENTION.
Econ 1320 Revision Lecture Final 12 January 2009.
Capital Flows and Recent Financial Crises Lecture # 16 Week 11.
Introduction to International Business David J. Boggs, Ph.D. Economic Environment.
Global Financial Crisis 1 Don Kopka, PhD Management Dept Towson University.
FERNANDO FERRARI FILHO (UFRGS, CNPQ) LUIZ FERNANDO DE PAULA (UERJ, CNPQ) Conference “Emerging Economies During and After the Great Recession” Cambridge,
The East Asia Currency Crisis  The Malaysia’s Case  Presented by: Pedro A. & Samen Son.
1998 Russian Crisis Group 8 Nery Lemus Wilmer Molina Omer Erinal Mollah Yerima.
TEAM FOUR AYO AKINKUOWO CARLA BRACKMAN JARED CAROLLO JERIMI NUCKOLLS Latin American Debt Crisis.
Chapter 1 Why Study Money, Banking, and Financial Markets?
Foreign Debt and Financial Crises Dr. George Norton Agricultural and Applied Economics Virginia Tech Copyright 2009 AAEC 3204.
Chapter 1 Why Study Money, Banking, and Financial Markets?
1 Current Account. 2 Issues and Applications Global capital markets and the current account Debt crisis in developing countries Sovereign risk.
The East Asian Crisis: Causes and Effects Joseph E. Stiglitz Senior Vice President and Chief Economist, World Bank.
1 Financial Crisis (addendum) Savings and Loan Crisis (the S&L Crisis) Deposit insurance creates moral hazard Relaxed regulation permitted.
Financial Crisis: The IMF in Latin America and East Asia Tom Schaller.
2Q | 2011 Guide to the Markets As of March 31, 2011.
1 International Finance Chapter 22: Developing Countries: Growth, Crisis, and Reform.
Foreign Debt and Financial Crises Dr. George Norton Agricultural and Applied Economics Virginia Tech Copyright 2006.
Economic Systems Ohio Wesleyan University Goran Skosples 23. Argentina.
A Tale of Two Crises: Korea’s Experience with External Debt Management Paper Prepared by Professor Yung Chul Park Seoul National University UNCTAD Expert.
CHAPTER THREE COUNTRY RISK ASSESSMENT. International banking is dealing with customers in another country. In addition to the customer credit risk, there.
Pearson Education, Inc. © 2006 CHAPTER 9 Money and Business INTERNATIONAL RELATIONS Seventh Edition Joshua S. Goldstein.
ECONOMIC ENVIRONMENT. Economic Systems CommandMarket.
Chapter 1 Why Study Money, Banking, and Financial Markets?
Y376 International Political Economy February 13, 2012.
Mexican Financial Crisis The “Lost Decade” 1980’s and the “Tequila Effect” 1994 By: Keith Aldis.
LATIN AMERICA’S LESSONS FROM CAPITAL ACCOUNT LIBERALIZATION José Antonio Ocampo Columbia University.
Outline for 12/10: International Development II Import Substitution Industrialization (ISI) Latin American Debt Crisis The New IMF: structural adjustment.
22-1 Copyright © 2006 Pearson Addison-Wesley. All rights reserved. Borrowing and Debt in Developing Economies A common characteristic for many middle income.
International Development Chapter 9 Meaning of Development Measuring Development Location of More and Less Developed Countries Strategies for International.
Chris DeBose Edan Harris 1997 Indonesia Financial Crisis.
Bond Markets in Latin America: On the Verge of a Big Bang? Eduardo Borensztein IMF Santiago de Chile, April 2007.
Life Impact | The University of Adelaide University of Papua New Guinea Economic Development Lecture 16: Balance of Payments and Macroeconomic Stability.
Chapter 18 The International Financial System. Copyright © 2007 Pearson Addison-Wesley. All rights reserved Unsterilized Foreign Exchange Intervention.
Part A: Emerging market economy risks. Chart A.1 The United Kingdom is linked to EMEs through several channels Sources: BIS Consolidated Banking Statistics,
Capital Market Integration Foreign Direct Investment (FDI) means the ownership of tangible assets in the home country by foreign firms or individuals.
Pedro Bastos September, Disappointment with Brazil given recent economic performance… GDP Growth Source: HSBC Global Asset Management – Brazil/
The Good, The Bad, and The Ugly The Global Financial Crisis The Good, The Bad, and The Ugly The Global Financial Crisis.
Financial barriers. Three types of barriers 1. High indebtedness of developing countries 2. Capital flight 3. Non-convertible currencies.
Chapter 1 Why Study Money, Banking, and Financial Markets?
Why Study Money, Banking, and Financial Markets?
Chapter 1 Why Study Money, Banking, and Financial Markets?
Copyright © 2010 Pearson Education. All rights reserved. Chapter 1 Why Study Money, Banking, and Financial Markets?
Chapter 13: Globalization: Foreign Investment and Foreign Aid Beyond Economic Growth: An Introduction to Sustainable Development By Tatyana P. Soubbotina.
1. What would you do with $5,000? Be specific. 2. What percentage of taxes should the government take? 3. Where is the safest place to keep your money?
Chapter 13 Balance of Payments, Debt, Financial Crises, and Stabilization Policies.
Why Study Money, Banking, and Financial Markets?
Why Study Money, Banking, and Financial Markets?
Why Study Money, Banking, and Financial Markets?
Foreign Debt. Foreign Debt Foreign Debt Third World Debt.
Why Study Financial Markets?
Why Study Money, Banking, and Financial Markets?
Why Study Money, Banking, and Financial Markets?
Balance of Payments, Current Account and Capital Account
Balance of Payments, Current Account and Capital Account
Why Study Money, Banking, and Financial Markets?
© 2016 Pearson Education Ltd. All rights reserved.19-1© 2016 Pearson Education Ltd. All rights reserved.19-1 Chapter 1 Why Study Money, Banking, and Financial.
Balance of Payments, Current Account and Capital Account
Presentation transcript:

Pre-Game Show (Terms worth knowing) GDP: Gross Domestic Product HDI: Human Development Index ISI: Import-Substituting Industrialization FDI: Foreign Direct Investment Gini: Corrado Gini (Italy 1912)

Sovereign Debt and the Erosion of Sovereignty James Hayes-Bohanan, Ph.D. Professor of Geography & Latin American Studies Bridgewater State University J2000: GETTINGGETTING INTO DEBT

What is it for? Credit

Big Projects Aswan High Dam: World Bank’s Kick-off Event

Petrodollars Literally: Too much of a good thing!

Overlending

Raúl Prebisch, ECLA Commodity Earnings over Time

¡Basta! Mexico Moratorium August 1982 Brazil followed Slow growth – the lost decade Inflation and hyperinflation Capital flight Contagion effect

Baker Plan Treasury Secretary James Baker Loans to cover interest payments were made with conditions: Privatization of state enterprises End to subsidies Opening the economies to foreign investment 12 of 15 large debtors complied Soon comprised 20 percent of all World Bank (WB) debt

Brady Plan Treasury Secretary Nicholas Brady Sought to attract investment by reforming economies Encouraged cooperating private banks to reduce their claims against LDCs Used new IMF (International Monetary Fund)/WB funding to collateralize debts in the form of new bonds - in other words, multilateralized the debt www. darbyoverseas.com

Secondary Markets Reduced claims Writing down debt Dimes or pennies on dollars

Debt-Equity Swaps

Debt-for-Nature Swaps

Baker and Brady Plans Liberalization Devalue currency Open markets Reduce government intervention Privatize assets Whirled Bank: A World Full of Poverrty

A Consensus?

Feedback: Privacy Policy Feedback
Do Not Sell My Personal Information
About project: SlidePlayer Terms of Service

© 2025 SlidePlayer.com. Inc. All rights reserved.