Modern Monetary Theory provides a useful lens through which to view the mounting sovereign-debt crisis in the developing world. It sheds light on why low- and middle-income countries borrow in foreign currencies, while also suggesting that rich countries could provide significant relief if they so desired....
MMT to the rescue from the debt trap. Is the debt trap due to a misunderstanding of economics and finance, or is it policy?
Project SyndicateThe Conceptual Roots of the Global South’s Debt Crisis
Ndongo Samba Sylla
2 comments:
Womanish turd world whining…
The point, surely, is that the elites of developing countries, put in place and protected by the CIA, MI-6, the French Foreign Legion and co, know the score perfectly. This is a story of elite capture, as we see from Argentina's experience around sovereign debt to US creditors. Ordinary people in low- and middle-income countries are intimidated, or cozened by the media, into accepting that in virtually all circumstances their country has to borrow and repay with exorbitant interest in foreign currencies.
Ultimately, the "debt crisis" is less about inter-national relations and more about class, and the vices of a comprador class.
Post a Comment