Class Notes (838,689)
Canada (511,049)
York University (35,521)
Social Science (3,019)
SOSC 2800 (38)
Lecture 13

SOSC 2800 Lecture 13: Week 13 - Debt and development

3 Pages
Unlock Document

Social Science
SOSC 2800
Merouan Mekouar

SOSC 2800 - Development in Comparative and Historical Perspective January 9 , 2017 Week 13: Debt and development Debt and Bargaining Power • Lenders: industrialized countries, big banks, small banks and international institutions o Control sources of $ o But have different interests • IMF/WB able to unify the lenders • Debtors: unable to exploit their potential power o No collective default o Talks about collective action but no action o Prisoner’s dilemma The Prisoners’ Dilemma The 1990s: another decade of crises. • From Mexico to Malaysia (via Russia, Brazil, Turkey…) • Financial liberalization o New capital flow: securities, stocks and bonds o More fluid: hot money o Nourished a succession of crises • Caused by: o Pegged currency combined with o Dependence on short term capital The Asian Financial Crisis • New kind of crisis: o Originates in the banking system o Unprecedented volumes of capital flows o Unprecedented amount of saving packages SOSC 2800 - Development in Comparative and Historical Perspective January 9 , 2017 o Severe economic and social consequences • Originated in Malaysia, Indonesia, Thailand, South Korea… • Interest rates and short term loans The Asian Financial Crisis • The Moral Hazard
More Less

Related notes for SOSC 2800

Log In


Join OneClass

Access over 10 million pages of study
documents for 1.3 million courses.

Sign up

Join to view


By registering, I agree to the Terms and Privacy Policies
Already have an account?
Just a few more details

So we can recommend you notes for your school.

Reset Password

Please enter below the email address you registered with and we will send you a link to reset your password.

Add your courses

Get notes from the top students in your class.