The debt problem and the new phase of the global crisis

Vol. 9 No. 4 (1989)

Oct-Dec / 1989
Published October 1, 1989
PDF-Portuguese (Português (Brasil))
PDF-Portuguese (Português (Brasil))

How to Cite

Lipietz, Alain. 1989. “The Debt Problem and the New Phase of the Global Crisis”. Brazilian Journal of Political Economy 9 (4):507-20. https://doi.org/10.1590/0101-31571989-1483.

The debt problem and the new phase of the global crisis

Alain Lipietz
Centre D’Etudes Prospectives D’Economie Mathématique Appliquées a la Planification – CEPREMAP, Paris, França.
Brazilian Journal of Political Economy, Vol. 9 No. 4 (1989), Oct-Dec / 1989, Pages 507-520

Abstract

This article deals with the phases and problems in the crisis of transition from
“Fordism” to a new order and a new growth model for the world economy. The two different
responses to the productivity fall problems – radical reduction of labor costs or a new social
contract – are pointed as determinants of the crisis evolution and, in special, of the development
of the American commercial deficit and Treasury debt, and the third world debt. It is
shown that the solution by debt payment is not viable and that macroeconomic logic leads
to devaluation as an adequate response. Ethical, political, and technical problems of this
scheme are analised indicating that more probably the debt devaluation will be combined
with a readjustment of the export flux of the United States and the Third World against
Europe and Japan. Finally, the possibilities of a significant European contribution to this
readjustment are discussed. It is argued that, for this to occur, a common social policy for
Europe must be adopted before the 1992 unification.

JEL Classification: F50; F55; P10.


Keywords: Structural change economic crisis