Debt Crisis

Draw on Lectures 9&10 and associated readings. Discuss the debt crisis of the 1980s and the stabilization efforts that played out subsequently. Do some research on the debt crisis in Bolivia and try to structure your paper around Bolivia’s experience. Was it a typical example of these years in Latin America, or not so much? How did events unfold? Did commodity prices fall and foreign exchange dry up? Was there capital flight? (What is capital flight?) What was the inflation experience in the 1980s and 1990s? What was done to stabilize the macroeconomy? How was debt restructured? Take advantage of the opportunity to demonstrate that you understand the concepts covered in the lectures and the readings.Cardoso, Eliana and Ann Helwege. Latin America’s Economy: Diversity, Trends, and Conflicts. Cambridge, Mass: MIT Press, 1995. (paper) ISBN-10: 0262531259 CHAPTERS 5-7Franko, Patrice. The Puzzle of Latin American Economic Development. (4th ed) Rowman and Littlefield, 2019. (paper) ISBN-10: 1442212160 CHAPTERS 4-5

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