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Making the Brady Plan Work

Jeffrey Sachs
Summer 1989
Summary -- 

The Brady plan, for reducing Third World debt through cuts in principal and/or interest, will probably fail if creditor participation remains voluntary, with each bank holding out and hoping that others will bear the losses. It needs a concerted effort to achieve a 'critical mass' of bank participation.

Jeffrey Sachs is Professor of Economics at Harvard University and an adviser to Latin American governments on behalf of the United Nations Development Program.

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