To my Millennial and Gen Z readers: You may not know this, but before you were born, developed countries didn’t have a financial crisis every decade or so. In fact, when it came to financial crises, that was considered to be a specialty of emerging markets. In particular, throughout the 1980s and 1990s, we quite regularly had to deal with sovereign default in some developing countries. The 1980s was a lost decade for Latin America with one country after another becoming over-indebted and many of them defaulting on their debt once oil prices declined and with it the hard currency revenues these countries needed to service their debt.
Back to the eighties?
Back to the eighties?
Back to the eighties?
To my Millennial and Gen Z readers: You may not know this, but before you were born, developed countries didn’t have a financial crisis every decade or so. In fact, when it came to financial crises, that was considered to be a specialty of emerging markets. In particular, throughout the 1980s and 1990s, we quite regularly had to deal with sovereign default in some developing countries. The 1980s was a lost decade for Latin America with one country after another becoming over-indebted and many of them defaulting on their debt once oil prices declined and with it the hard currency revenues these countries needed to service their debt.