In the last 30 years economic crises have become more frequent and expensive than ever before. This volume provides a pluralistic discussion from world-renowned scholars on the international
aspects of the debt crisis and prospects for resolution. It argues that current economic policies exacerbate the problem of inefficient and unstable markets as they are based on standard
economic theory which focuses on equilibrium models rather than equilibrium behaviour. It provides a comprehensive evaluation of how the debt crisis has affected Western Europe, the emerging
markets and Latin America, and puts forward different suggestions for recovery.
The volume is divided into three parts. The first part looks at how the debt crisis has affected different regions around the world and examines lessons for Europe from the Latin American
experience. The second section reviews the theory and empirical evidence of the costs of default, and analyses the restructuring process. The final section examines policies, instruments and
mechanism for crisis resolution.
