Exam 22: Developing Countries: Growth, Crisis, and Reform

Please consider Table 22-2 below. Assuming constant Annual Average Growth Rate in the future, calculate the output per capita for the United States and South Korea for the year 2040.

Should the IMF be abolished? Discuss.

List and explain 3 major channels through which developing countries have financed their external deficits.

Explain how Brazil was able to reduce the rate of inflation from 2,669 percent in 1994 to less than 10 percent in 1997?

If a developing country institutes a currency board, it relinquishes control over having

When a government defaults on its obligations, the event is called a

What does it mean for a loan to be in default?

Explain what the four main categories of world economies are and give examples?

What do you think about dollarization?

Describe alternative forms of capital inflow to finance external deficits and explain why these methods were used in different times?

The Convertibility Law of April 1991 in Argentina

Which of the following economic lessons should we take from developing country crises in Latin America (and elsewhere)?

What weakness in the economic structures of Asian countries contributed to the severe financial crisis that Asian economies experienced in 1997?

When one compares per-capital output growth rates among countries

What is Argentina's Convertibility Law of April 1991? Explain.

Which of the following does NOT explain why developing countries encouraged new manufacturing industries of their own in the mid 20th century?

A currency board can ________ a country's ability to act as a lender of last resort.

Why is China's currency undervalued?

The main reason for the crisis in Argentina in 2001 and 2002, has to do with exchange rate policy, i.e., the continued peg of the exchange rate to the dollar. Discuss.

Based on the 1997 Crisis and your own experience, what are the main weaknesses of the East Asian economies?