Chapter 14 Flashcards
1
Q
How did the debt crisis happen?
A
loans not grants. Oil prices rising quickly. Petrodollars. Inflation. Declining exchange rates. Falling commodity prices.
2
Q
What is sovereign default?
A
a country’s inability to pay some or all of its international debt.
3
Q
What is debt relief?
A
debt being completely written off the books.
4
Q
How was the debt restructured?
A
since so many non core countries were looking at default they rescheduled loan payments so that the global economy would not collapse. Multilateral organizations also provided aid.
