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The Intertemporal Budget Constraint of a Country

In this chapter, Professor Sachs talks about the longer-term implications of capital flows. The current account balance gives a snapshot of how a country is acting at any moment in time. In order to…

From  SDG Academy 2 plays

Bank Runs and Panics, Part I

This chapter focuses on bank runs, and explains why they can have such damaging effects on the world economy, as well as be so rapid that (in effect) they aren’t seen coming. Professor Sachs…

From  SDG Academy 4 plays

What Happens When Governments Go Broke?

This chapter focuses on government insolvencies and government spending. When governments take on so much debt that they can’t cover debt servicing, and when they face questions of their…

From  SDG Academy 8 plays

How to Prevent Bank Runs

This chapter focuses on how bank panics can and should be prevented. There are four methods proposed for preventing (or decreasing) bank panics should be prevented: capital adequacy, reserve…

From  SDG Academy 2 plays