Question: (Default) Poor countries are exploited when they borrow in global capital markets, because they are charged an extortionate rate of interest. Explain how empirical evidence

(Default) “Poor countries are exploited when they borrow in global capital markets, because they are charged an extortionate rate of interest.” Explain how empirical evidence and theoretical arguments might counter this assertion.

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The empirical evidence suggests that lenders do not make large profits on loans to debtor countries ... View full answer

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