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Debt Sustainability and Intertemporal Budget Constraints: Development Traps in Belt and Road Financing

BRI loans test intertemporal budget constraints, risking debt traps when growth and tradable returns fall short....
4 min read
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Saddique Ansari • February 04, 2019 • 1 min read

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PRICE LEVEL C I G X M AD
200 300 50 100 50 450 50
180 320 60 105 100 425 160
160 340 70 110 150 400 270
140 360 80 115 200 375 380
120 380 90 120 250 350 490
100 400 100 125 300 325 600
80 420 110 130 350 300 719
60 440 120 135 400 275 820

 


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Credit Rationing and Information Asymmetry: The Economics Behind Online Micro-Loans

Credit rationing and asymmetric info explain why high-risk micro-loans exist and carry high rates....
4 min read

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