Working Paper: NBER ID: w2379
Authors: Rudiger Dornbusch
Abstract: This paper investigates the role of interest rates, commodity prices, growth in bringing the debt crisis about and how they facilitated or made more difficult the first five years of adjustment. We also ask whether and how the world macroeconomy is likely to contribute to the solution of the debt problem in the next five years.
Keywords: No keywords provided
JEL Codes: No JEL codes provided
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| real interest rates (E43) | financing requirements (G32) |
| financing requirements (G32) | debt crises (F34) |
| real interest rates (E43) | debt crises (F34) |
| deterioration in noninterest current account (F32) | financing gaps (G32) |
| financing gaps (G32) | debt crises (F34) |
| joint behavior of interest rates and commodity prices (Q02) | creditors' willingness to extend credit (G21) |
| creditors' willingness to extend credit (G21) | debt crises (F34) |