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

Compare the macroeconomic performances in the 1990s of the following countries under the following exchange-rate regimes: floating exchange rates, Mexico and Brazil; capital control, China and Malaysia; and currency boards, Estonia and Hong Kong; dollarization, Argentina.

Economists Eichengreen and Hausmann coined the phrase original sin to describe developing countries inability to borrow in their own currencies. Where do they believe that this inability comes from? What are other beliefs on this topic?

The world's economies can be divided into four main categories according to their annual per-capita income levels: low-income, lower middle-income, upper middle-income and high-income economies. What category would the Poland, Hungary, and the Czech and Slovak Republics fall under?

The upper middle-income countries enjoy only about ________ of the per-capita GNP of the industrial group.

The world's economies can be divided into four main categories according to their annual per-capita income levels: low-income, lower middle-income, upper middle-income and high-income economies. What category would Pakistan and India fall under?

During the time period of 1981-1983 what dramatic world issue happened?

Please consider Table 22-2 below. Assuming constant Annual Average Growth Rate in the future, determine the year in which the United States will have the same output per capita as South Korea?

The world's economies can be divided into four main categories according to their annual per-capita income levels: low-income, lower middle-income, upper middle-income and high-income economies. What category would mainland China fall under?

Average per-capita GNP in the richest, most prosperous economies is ________ times that of the average in the ________ economies.

In developing countries, exchange rates tend to be

The problem of moral hazard has lead

What is the basic problem of developing countries?

What is the domino effect or contagion?

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

The world's economies can be divided into four main categories according to their annual per-capita income levels: low-income, lower middle-income, upper middle-income and high-income economies. What category would the Saudi Arabia falls under?

Describe some of the features hindering developing countries from growing faster.

The term Original Sin by two economists Barry Eichengreen and Ricardo Hausmann is used to describe what?

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

The 1980s are considered as the "lost decade" of Latin American growth. Explain why?

Based on the case study, answer the following question: Can currency boards make fixed exchange rates credible?