debt crisis custom essays and research papers (1 essays)

A third factor was the combination of the sharp rise in nominal interest rates after 1979 and the decline in world inflation after 1982 which lead to a steep increase in world interest rates particularly in the years 1979-1983 . Loans as a result became more expensive and most countries lacked the export earnings to carry such expensive debts . Wertman (1984 ) further argues that poor economic management in many debtor countries also contributed strongly to their debt problems . The crisis countries...