IDEAS home Printed from https://ideas.repec.org/a/bla/ecopol/v3y1991i3p239-263.html
   My bibliography  Save this article

Default On Developing Country Debt: Is It Justified By International Law?

Author

Listed:
  • George T. Kanaginis

Abstract

A simple balance of payments accounting framework is used to analyze the role of interest rates and commodity prices in the debt crisis of Argentina, Brazil, Mexico and Venezuela. It is argued that high real interest rates in the 1980s were unexpected by showing that the actual path was significantly far away from an optimal forecast based on an ARIMA process estimated for the 1954–1979 as well as for the 1926–1979 period. According to the legal principle of unforeseen change of circumstances, this may provide sufficient grounds for partial debt forgiveness by a court of law.

Suggested Citation

  • George T. Kanaginis, 1991. "Default On Developing Country Debt: Is It Justified By International Law?," Economics and Politics, Wiley Blackwell, vol. 3(3), pages 239-263, November.
    • Handle: RePEc:bla:ecopol:v:3:y:1991:i:3:p:239-263
    DOI: 10.1111/j.1468-0343.1991.tb00049.x
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/j.1468-0343.1991.tb00049.x
    Download Restriction: no
    File URL: https://libkey.io/10.1111/j.1468-0343.1991.tb00049.x?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Jeffrey D. Sachs, 1989. "Developing Country Debt and the World Economy," NBER Books, National Bureau of Economic Research, Inc, number sach89-3.
    2. Jeffrey D. Sachs, 1989. "Introduction to "Developing Country Debt and the World Economy"," NBER Chapters, in: Developing Country Debt and the World Economy, pages 1-34, National Bureau of Economic Research, Inc.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. N.M. Healey, 1994. "The international debt crisis: the end of the beginning, not yet the beginning of the end," BNL Quarterly Review, Banca Nazionale del Lavoro, vol. 47(188), pages 75-97.
    2. Daniel Levy & Tamir Mayer & Alon Raviv, 2020. "Academic Scholarship in Light of the 2008 Financial Crisis: Textual Analysis of NBER Working Papers," Working Papers hal-02488796, HAL.
    3. M. Ayhan Kose & Raymond Riezman, 2013. "Trade shocks and macroeconomic fluctuations in Africa," World Scientific Book Chapters, in: Raymond Riezman (ed.), International Trade Agreements and Political Economy, chapter 19, pages 369-394, World Scientific Publishing Co. Pte. Ltd..
    4. Kyle, Steven C., 1990. "Debt-For-Nature Swaps and the Environment in Africa," Staff Papers 121546, Cornell University, Department of Applied Economics and Management.
    5. Mario Cimoli & Jose Antonio Ocampo & Gabriel Porcile & Nunzia Saporito, 2020. "Choosing sides in the trilemma: international financial cycles and structural change in developing economies," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 29(7), pages 740-761, October.
    6. Saungweme Talknice & Odhiambo Nicholas M., 2018. "An Analysis of Public Debt Servicing in Zambia: Trends, Reforms and Challenges," Croatian International Relations Review, Sciendo, vol. 24(81), pages 113-136, May.
    7. Levy, Daniel & Mayer, Tamir & Raviv, Alon, 2022. "Economists in the 2008 financial crisis: Slow to see, fast to act," Journal of Financial Stability, Elsevier, vol. 60(C).
    8. James R. Brown & Lauren C. Lax & Bruce C. Petersen, 2010. "Financial Market Crises and Natural Resource Production," International Review of Finance, International Review of Finance Ltd., vol. 10(1), pages 93-124, March.
    9. P.Kalonga Stambuli, 2003. "Paris Club Debt Relief, Traditional Frameworks and Implications for Poor Country Debt," International Finance 0301003, University Library of Munich, Germany.
    10. Godínez Zúñiga, Víctor Manuel, 1990. "Evolución de la estrategia internacional para el manejo de la crisis de endeudamiento de los países en desarrollo," Sede Subregional de la CEPAL en México (Estudios e Investigaciones) 26864, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
    11. Sebastian Edwards & Julio Santaella, 1993. "Devaluation Controversies in the Developing Countries: Lessons from the Bretton Woods Era," NBER Chapters, in: A Retrospective on the Bretton Woods System: Lessons for International Monetary Reform, pages 405-460, National Bureau of Economic Research, Inc.
    12. Taylor, Alan M., 1998. "Argentina and the world capital market: saving, investment, and international capital mobility in the twentieth century," Journal of Development Economics, Elsevier, vol. 57(1), pages 147-184, October.
    13. Matthew Abiodun Dada, 2020. "COVID-19 Outbreak and Behavioral Maladjustments: A Shift from a Highly Globalized World to a Strange World of Unique Isolationism," Journal of Economics and Behavioral Studies, AMH International, vol. 12(4), pages 43-58.
    14. Taylor, Alan M., 1995. "Debt, dependence and the demographic Transition: Latin America in to the next century," World Development, Elsevier, vol. 23(5), pages 869-879, May.
    15. Smita Nath, 2013. "Free Trade Zones and Outstanding Debt," Foreign Trade Review, , vol. 48(2), pages 203-218, May.
    16. International Monetary Fund, 2005. "Bolivia: Ex-Post Assessment of Longer-Term Program Engagement," IMF Staff Country Reports 2005/139, International Monetary Fund.
    17. Mr. Luis Ignacio Jácome, 2015. "Central Banking in Latin America: From the Gold Standard to the Golden Years," IMF Working Papers 2015/060, International Monetary Fund.
    18. Grace G Kgakge-Tabengwa, 2014. "Impact of Shocks to Public Debt and Government Expenditure on Human Capital and Growth in Developing Countries," Journal of Economics and Behavioral Studies, AMH International, vol. 6(1), pages 44-67.
    19. Iyanatul Islam, 1992. "Political Economy and East Asian Economic Development," Asian-Pacific Economic Literature, The Crawford School, The Australian National University, vol. 6(2), pages 69-101, November.
    20. Taner Turan & Halit Yanıkkaya, 2021. "External debt, growth and investment for developing countries: some evidence for the debt overhang hypothesis," Portuguese Economic Journal, Springer;Instituto Superior de Economia e Gestao, vol. 20(3), pages 319-341, September.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:ecopol:v:3:y:1991:i:3:p:239-263. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://www.blackwellpublishing.com/journal.asp?ref=0954-1985 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.