What's the Consequences of the Volkershok?

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In the seventies, there'd been a huge spree of lending to third boroug countries by bankers from the global north. And particularly they were indebted to us which meant that their debts were dollar debts,. They would have to pay these debts back in dollars. So what the vulkar shok does is to really raise the cost of dollarized debt. It's a huge increase in interest rates for anyone who owes dollars. But essentially, e the volkershok makes these debts so hard to pay back that the countries need a ba out.

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