productivity and in the gross capital formation rate, which combined with the lack of domestic capital, have largely affected the …

level of debt is reached: (i)investment falls precipitously as it should when it becomes optimal to default, (ii) economic …-empt default and exact punitive interest rates. We find a systematic response of investment, particularly when property rights are … with concessional rates. Thus, while debt relief is likely to improve economic policy (and especially investment) in …