Financial Instability and the International Debt Problem

Download or read book Financial Instability and the International Debt Problem written by George McKenzie and published by Springer. This book was released on 1991-11-25 with total page 211 pages. Available in PDF, EPUB and Kindle. Book excerpt: The authors argue clearly and convincingly in this book that the debt crisis which has plagued the world economy for the past ten years is due to the inherent fragility of financial markets. Governments, financial institutions and borrowers, including developing countries, have simply expected too much from these markets. In a world of volatile interest rates, exchange rates and uncertain government policy, it is virtually impossible for financial institutions to effectively distinguish fundamental shifts in economic activity from random shocks.