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Is The Global Debt Coming
Is The Global Debt Coming
coming?
Start of crisis:
- 1982 was the start of the debt crisis as Mexico
indicated they would not be able to finance its
debt.
- Many economies had to devalue their currency to
keep exporting industries competitive as they faced
an economic downturn.
- 16 countries in Latin America had to reschedule
their debts
Second wave
Causes:
Characteristics:
- This paved the way for mega banks. These banks led to
increase private sector borrowing particularly in Europe
and Central Asia
“As covid attempts to sink the world economy the moment for
stemming the tide has passed.”
This statement basically translates to say that covid is
severely impacting countries economic, health and livelihood
stability. In relation to debt, the time for which economies
were to pull their reigns and stop borrow has passed, and
some are in too much debt now to stop. For example the US,
which is the country with the largest debt worldwide.
Answering the question - Is the global debt crisis coming?
Bhatt, V. (2018, September 3). Re-Thinking Debt Burden: Going with the Flow? Eastern Economic Journal.
https://link.springer.com/article/10.1057/s41302-018-0113-x?error=cookies_not_supported&code=3b20bb
bc-a3eb-440a-8a20-8d9c99742d9b
CNBC International. (2020, March 26). Is a global debt crisis coming? | CNBC Explains. YouTube.
https://www.youtube.com/watch?v=_Cf7o_YlH5M