ABSTRACT
This chapter explains the structure and the long-term dynamics of periphery indebtedness during the nineteenth and twentieth centuries. It summarizes the empirical evidence and examines the implications of the country case studies for the operation of global debt cycles. The chapter discusses developments of the present debt-settlement strategy and the prospects for a long-term solution to the present debt crisis in the light of the historical experiences. At the global level of the world-economy, strong empirical evidence has been found for the existence of debt cycles: capital exports from the core, international loan-raising activity of the periphery, the outbreak of debt-service incapacity and the conclusion of debt-settlement agreements were all subject to cyclical fluctuations. The growing institutionalization of international financial relations and the consequent increased capability of creditors for a more controlled response to the debt crisis raises the question about the future prospect for financial cycles and long cycles in general.
