ABSTRACT
During the late 1970s and early 1980s, many developing countries faced serious fiscal deficits, balance-of-payments difficulties, and accelerating inflation. These problems traced their roots to both domestic and external factors, including oil price increases, the falling prices of other primary commodities, a rise in international interest rates, and macroeconomic mismanagement which led to inefficient resource allocation. These events unfolded in the following manner.
