NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

American Economic Policy and the International Debt Crisis

Hans-Werner Sinn

NBER Working Paper No. 3532
Issued in December 1990
NBER Program(s):PE

This paper advances the hypothesis that the world debt crisis was mainly induced by the dramatic rise of US interest rates in the first half of the eighties. It sees this rise in interest rates primarily as a result of a tight US monetary policy and excessively large investment incentives provided by the 1981 Us tax reform. A welfare analysis shows that the policies could have increased the US advantage from lending its capital abroad, had they been more moderately designed. The actual policies, however, were by far too strong to produce this result.

download in pdf format
   (306 K)

email paper

Machine-readable bibliographic record - MARC, RIS, BibTeX

Document Object Identifier (DOI): 10.3386/w3532

Published: JOICE 2, ed. G. Gandolfo, 1993, pp. 207-226.

Users who downloaded this paper also downloaded* these:
Fischer w2373 Resolving the International Debt Crisis
Dickens and Katz w2271 Inter-Industry Wage Differences and Theories of Wage Determination
Sinn w3248 Tax Harmonization and Tax Competition in Europe
Reinhart and Rogoff w15795 From Financial Crash to Debt Crisis
Landes and Posner w0110 The Independent Judiciary in an Interest-Group Perspective
 
Publications
Activities
Meetings
NBER Videos
Themes
Data
People
About

National Bureau of Economic Research, 1050 Massachusetts Ave., Cambridge, MA 02138; 617-868-3900; email: info@nber.org

Contact Us