Fontiveros, Domingo and Palma, Pedro A. (1987) External Debt and the Recessive Impact of a Devaluation: The Venezuelan Case. Caracas: MetroEconómica. March 1987.
This paper synthesizes our ongoing evaluation of the Venezuelan government’s economic policy initiatives since December 1986, including an important currency devaluation, their short term effects on the economy, as well as the impacts of the new agreement reached with the creditor banks on the public sector’s external debt on February 26th 1987. Our attention is focused on six major areas of interest:
– Foreign trade
– Foreign exchange availability
– Distribution of income between the public and private sectors
– Effects on the level of economic activity
– Financial repercussions
– Inflation and economic growth
This paper was presented at the “Project Link” Meeting, New York: United Nations, March 9-11 1987, and at the “Edward S. Mason Program in Public Policy and Management”, John F. Kennedy School of Government, Harvard University. March 1987.