ratio of private credit to GDP, current account deficits, and openness to trade are helpful in understanding the intensity …

debt problems. Spreads increased and, surprisingly, so did the share of the debt held by domestic creditors. Credit was … for domestic purchases of debt. Crowding-out effects arise because private borrowing is limited by financial frictions …. This implies that domestic debt purchases displace productive investment. The model shows that these purchases reduce …

This paper analyses the history and effectiveness of the two major mechanisms of resolution of balance of payments … providing adequate lending facilities as well as focusing conditionality on macro-relevant areas. In contrast, and despite the …