Ch 15 International Financial Crisis Flashcards Preview

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Flashcards in Ch 15 International Financial Crisis Deck (5)
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1
Q

Heavily Indebted Poor Countries Initiative

A

A plan initiated to reduce the debt owed by the world’s poorest countries to multilateral lenders (linked debt reduction to two-stage conditionality process

2
Q

Hot money

A

Financial capital held in short-term instruments that can be quickly liquidated at the first sign of financial trouble

3
Q

Moral hazard

A

A consideration that arises when banks believed that the government will bail them out if they suffer large losses on the loans they have made.

4
Q

Paris club

A

Its primary goal is to negotiate the rescheduling of debts from nonmember governments to the 19 permanent members

5
Q

MDRI

A

Provides full forgiveness of all debt to multilateral lenders for eligible countries