POLS 2080 Chapter Notes - Chapter 4: Heavily Indebted Poor Countries, Debt Relief, Brady Bonds
29 Dec 2013
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When england began lending to the us (when the us was new) many states defaulted on their loans. When mexico defaulted on their debts britain, spain, and france invaded (1861) Often the loans profitable for both the lender and the borrower and they are repaid. Those are often linked with fraud and swindlers (this period is referred to as bubbles or manias ) which is followed by some sort of crash: the past 250 years have seen four examples of these cycles. Governments, politics, the cold war, and the debt crisis. The end of wwii brought about four major changes in global politics and economics: decolonization began, and many countries became independent, new international institutions were created (un, world bank, imf) The world bank first lent for european reconstruction and then to the newly created european countries: major international corporations began to arise, the advent of nuclear weapons changed the nature of war and of empire.
