The Importance of Conditional Lending in the World Economy

Most of the lending that happens in the 19 seventies into the early 19 eighties is in dollars, right? So what we witness here is a kind of first excitement almost on the part of recently decolonized countries. It means that these countries are very vulnerable to movements in the exchange rates. T so now currencies are no longer tied to one another, but are freely floating. And you can end up with enormous debt obligations that you are struggling to service out of your domestic currency. The i m f emerging as an entity that is trying to establish itself in order to manage this new world of international lending. But it's clearly an agent on behalf of the creditors in the north.