BlogMainstream View

PUBLIC DEBT GUARANTEES AND PRIVATE CAPITAL FLIGHT

Significant amounts of private capital have flowed out of several of the more heavily indebted developing countries. This outflow, often called “capital flight,” largely escapes taxation by the borrowing-country government, and has generated concern about the prospects for future servicing of the debt. Imperfect contract enforcement may lead to implicit or explicit government guarantee of…

Περισσότερα