Tag Archives: Why Did Import Substitution Industrialisation Run into Serious Problems by 1970s/1980s?

Of course, it is well known that hot money inflows and financial deregulation in the 1970s caused a disaster in Latin America, since, in the late 1970s and early 1980s, Paul Volcker’s quasi-monetarist experiment and hiking of US interest rates caused a debt crisis in Latin America that broke their economies in terrible ways. (A phenomenon which, incidentally, was a forerunner of the Asian Financial Crisis of 1997–1998.)But I am not concerned with that here. This post is concerned with the...

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