lance of payments through the level and composition of demand within the borrowing nation's domestic economy. Conditions may also emphasize supply factors.
In recent years, conditions have also often emphasized the creation, within a borrowing nation's domestic economy, of positive interest rates, and the establishment of rational pricing for public services. Rational pricing, in the jargon
5Driscoll, 35. 4of economics, refers to realistic, market value pricing. To most developing nations borrowing from the IMF, however, rational pricing is a euphemistic phrase meaning higher prices.
Complicating the stabilization problem in most developingnations is the massive external debt owed by these nations. Many analysts view the external debt as essential for continued development in the region; however, all analysts recognize the complexity it has introduced into the stabilization efforts. The
...