a) What are the reasons why the colonized region in latin america remained underdeveloped?
b) How/Why was the Great Depression considered an "imported crisis" for Latin America?
c) Under ISI policies, Latin America became one of the most protectionist regions in the world. What were some of the tactics of protectionism that they employed?
d) During the ISI period, interest rates were kept low to encourage investment. What were the two negative side effects of such a policy?
e) What are the external and domestic origins of the Debt Crisis in Latin America?
f) In 1987 Peru's debt could be purchased in the secondary market for 2 to 7 cents on the dollar. Why was it traded with such a big discount?
g) Why was the Brady plan more successful than the Baker plan?
h) What are the costs of inflation?
i) Elaborate on the statement: "Inflation is a monetary phenomena".
j) From the structuralists point of view, there are three key factors that allow inflation to rise. What are these three factors? Explain how they work.
k) In 1976 Mexico devalued its currency from 12.5 to 19.8 pesos per dollar. What are the effects of such devaluation on local consumers, investors, and on external debt? Who are the winners? (for the last question read the article on Moodle under ‘material')
l) Macroeconomic policy trilemma: During the 1970's, what were the two tools that Mexico was using? Under these policies, how can the government control the exchange rate?