Debt Cycles In The World-economy: Foreign Loans, Financial Crises, And Debt Settlement, 1820-1990

Integrating a world-system perspective with historical case studies and empirical data, the author demonstrates the cyclical character of external indebtedness since the beginning of industrial capitalism in the early 19th century. Against this background, the author explains the current global debt crisis, in which creditor nations are encountering increasing problems servicing the massive debts incurred by Third World borrowers throughout the 1970s. The diverse causes of the periodic debt cycle are analyzed, and the management of each crisis is also discussed. In addition to showing how the current cycle fits into the larger pattern, the author offers recommendations for a long-term solution based on historical experience.