Theoretical and Policy-Oriented Aspects of the External Debt Economics

The international debt crisis is still a danger to the world economy. In this book, theory and practice are combined in one comprehensive approach to the debt problem. The theoretical issues are discussed in their conceptual, logical inter-relationship and are related to the major macroeconomic issues of indebted countries. International risk assessment models are used as a bridge between theory of international finance and risk assessment methodologies used in commercial banking. External debt optimising models and default models are analyzed within a macroeconomic framework as well as with regard to debtors' creditworthiness. The debt problem is treated in two closely related parts. In the first one, the theoretical context of debt crisis is discussed in its macroeconomic setting; in the second part the debt relief techniques, instruments and policies are discussed within the framework of the new international debt strategy, and the components of the new debt management strategy. This monograph on international economics and development economics is intended for researchers, graduate students and policy making experts.