Exam 14: Developing Countries and International Finance I: the Latin American Debt Crisis

Between 1970 and 1980,the developing world debt as a whole to foreign lenders went from

Rising American interest rates in the early 1980s were transferred directly to Latin America because two-thirds of Latin American debt carried variable interest rates.

During the 1980s,the most accurate estimate of Argentina's average inflation rate per year was over

Structural adjustment programs were controversial because they sought to reshape the indebted economies by increasing the government's role and reducing that of the market.

According to Oatley,which of the following was not a reason that induced developing governments to embark on economic reform in the 1990s?

By 1982,the thirty most heavily indebted developing countries owed more than $600 billion to foreign lenders.Creditors initially diagnosed the debt crisis as a

Political instability is one of the most important reasons why sub-Saharan Africa attracts so little private capital.

If all Latin American debtor governments had defaulted in the 1980s,most of the capital of the largest American commercial banks would have been eliminated.

Explain how and why the expansion of foreign aid programs in the 1960s was influenced by decolonialization and American desires to contain Soviet Communism.

As a result of the oil price increases and other factors,budget deficits in Latin America by the end of the 1970s on average were about

The center piece of macroeconomic stabilization program intended to eliminate the large current-account deficits was the reduction of

Which of the following domestic interest groups in developing countries stood to lose the least from stabilization and structural adjustment?

In 2009,the World Bank and other multilateral development agencies provided an additional development assistance of

At the center of the difficult relationship between developing countries and the international financial system is a seemingly inexorable boom-and-bust cycle.

Throughout the postwar period,private capital flows have been larger than foreign aid flows.

Why do developing countries continue to draw on foreign capital in spite of its apparent political dangers?

Explain the rationale and consequences of structural adjustment programs on the economic crisis for Latin America in the early 1980s.

Creditors were able to push such a large share of the adjustment costs onto the debtor governments because

Between 1956 and 1970,the amount of aid provided through multilateral development agencies increased

The foreign debt of the seven most heavily indebted Latin American countries between 1970 and 1982 increased by a factor of