crisis. The rapid rise in Japan's debt-GDP ratio was shown in Figure 18.4. Yet none of these economies experienced defaults or high inflation. In contrast, the debt-GDP ratio in Argentina peaked at 65% (up fro: in 1996) and then a crisis struck, leading to default and other macroeconomic problems. How, broadly speaking, do we understand these very different outcomes?

crisis. The rapid rise in Japan's debt-GDP ratio was shown in Figure 18.4. Yet none of these economies experienced defaults or high inflation. In contrast, the debt-GDP ratio in Argentina peaked at 65% (up fro: in 1996) and then a crisis struck, leading to default and other macroeconomic problems. How, broadly speaking, do we understand these very different outcomes?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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