1. Compare and contrast the different types of debt

problems that were discussed in this chapter in

terms of (a) the source of the debt, (b) the interests

of major actors in each situation, and (c) how the

situation was resolved, if it was.

2. Why so much fuss over speculation? Why do

you suppose Keynes would be concerned about

it today? Use Chapter 7 to help answer this

question.

3. Explain the connection between debt that results

from borrowing money and the debt associated

with a deficit in the balance of payments. Use

examples from the readings.

4. What lessons could Europeans learn from previous crises that could help them resolve their own

financial crisis?

5. Explain the role of the IMF in helping to solve

balance-of-payments crises. Do you feel the IMF

could do more? Why? Why not?

6. If you were to write up a brief outline of how to

solve current crises, what measures would you

emphasize? Explain.