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.
World Issues Exam Prep
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