Are there reasons to be concerned about debt buildup

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Reference no: EM133327694

Case Study: Some of the countries that currently have the highest debt-to-GDP ratios are developed countries, including the United States. Yet, developing countries seem to pay a higher economic price for indebtedness through balance of payments crises (consider, for example, the case of Sri Lanka, which has been in the midst of a major economic crisis this year for reasons partly related to debt).

Question:

1)One reason for this asymmetry is that the US. dollar is used worldwide, whereas developing country currencies are not in high demand. Will the U5. ever pay an economic price for its high indebtedness?

2)Looking at Colombia has it experienced any major debt crises?

3)Are there reasons to be concerned about debt buildup in Colombia?

Reference no: EM133327694

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