The Limits of Stabilization
Subtitle: Infrastructure, Public Deficits, and Growth in Latin America (Latin American Development Forum)
Contributors: William Easterly (Editor); Luis Serven (Editor)
Edition: 1 edition
Publisher: Stanford University Press
Published: October 9, 2003
Language: eng
Format: Paperback
Number of pages: 232
ISBN-13: 9780804749725
Subjects: Public Policy - Economic Policy; Economic History; Business/Economics; Business & Economics; Business / Economics / Finance; Public Finance; Development - Economic Development; Business & Economics / Economic Development; Development - Business Development
First sentence: SUPPOSE THAT A DEVELOPING-COUNTRY policymaker proposed the following adjustment program to the International Monetary Fund (IMF) and the World Bank: her government would repay public external debt, which carries an interest rate of 9 percent a year, by substituting debt from another source that carries an interest rate of 20 percent a year.