European Journal of Political Economy volume 8, issue 1, P141-145 1992 DOI: 10.1016/0176-2680(92)90067-q View full text
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Otto Swank

Abstract: drawbacks on the balance of payments. Or even worse, some governments borrow abroad for consumption expenditures (e.g. military equipment); the resulting interest payments may be harmful for economic growth. A large foreign debt may make a country more vulnerable for foreign monetary policy, as is clearly illustrated by the international debt crisis of the 1980s. In that decade Brazil, Argentina and h4exico experienced a disruption of society. Therefore, even if the net foreign asset position of a country is t…

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