The effects of the external debts of Mexico,Brazil, Argentina,Venezuela, and the Philippines on the United States |
| |
| Authors: | Gerald C. Berg |
| |
| Affiliation: | US International Trade Commission , Washington DC , USAThe views expressed here are those of the author and do not necessarily reflect the opinion of the US International Trade Commission. |
| |
| Abstract: | The external debts of developing countries have become a major issue recently, prompting debate among both academicians and policy markers. In this paper, the author describes the origins and history of debt problem, summarizes proposals for policies for creditor nations, and estimates the effects of debt-related austerity in five major debtor nations on US imports, exports, net exports, and output in 1985. He concludes that debt-related austerity was responsible for 11.0% of the US merchandise trade deficit in that year, caused decreases in US net trade in 40 to 61 non-service industries studied and decreases in output in 46 industries, and caused a decrease of 0.5% in GNP. Neither a borrower nor a lender be; For loan oft loses both itself and friend, And borrowing dulls the edge of husbandry. William Shakespeare (Hamlet, I. iii. 75) |
| |
| Keywords: | |
|
|
