Latin American Debt Crisis (1982–1989)
Background and Market Impact
Up to this point, we have covered various crisis scenarios in history spread across four different continents, with two case studies on the United States that were separated by 50 years. This chapter is the first case study on the Latin American region, and many refer to this period for Latin America as the lost decade. You will later see the term lost decade was also used to reference Japan in the 1990s.
The crisis in the 1970s covered in the previous chapter is a perfect transition to the Latin American debt crisis of the 1980s. The oil price shocks in the 1970s planted the seeds for this crisis. The soaring oil prices led to current account deficits for countries ...
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