Search for tag: "bankruptcy"
The Intertemporal Budget Constraint of a CountryIn 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
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Bank Runs and Panics, Part IThis 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
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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
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How to Prevent Bank RunsThis 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
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