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Is foreign debt a problem?
Foreign debt is the whole amount owed overseas through a country at an exact moment in time. Debt is a problem since
• High debt imply high interest payments
• The opportunity cost of interest payments is public services forgone.
• Loans are repaid within foreign currency which has to be earned during a surplus onto the current account balance.
Implications: Foreign debt good only when this is the result of financing investment in suitable productive capacity. Increasing output permits debt and interest to be repaid.
Define the macroeconomic stability in market for promoting development. Macroeconomic stability implies that: • Tight fiscal policy that is balanced government budgets and d
What is Balanced Growth theory? Balanced Growth theory: This theory argues that market is not capable to deliver growth. State approaches to development are needed since
Question 1: ‘The WTO was set up with the intention of regulating international trade between countries'. How successful has the WTO been in attaining its objectives? Questi
Information of the history of Banking
Can you help me with my assingment exael
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