This study provides an in-depth analysis of the external debt
problem of a country--Mexico--that allegedly faces a debt overhang,
which inhibits long-term growth-oriented investment. Issues facing
the debtor nation and its commercial bank creditors are
simultaneously examined in order to move closer towards an
understanding of the situation of debt-distressed developing
countries. The need to address these issues on a case-by-case basis
is emphasized, opposed to a global approach to solving the debt
crisis presently recommended by some.
Not only does this work provide a survey of the theoretical
literature on the international debt crisis it also provides a way
of incorporating simultaneously the concerns of the opposing
sides--debtor nations and creditor banks. It will be of interest to
economists and policy-makers in international finance and trade and
development economics.
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