One of the most important economic problems that developing countries will face during the 1980s is that of external indebtedness. This paper analyzes in detail the future prospects for Chile's external debt for the rest of the decade. We argue that the level of domestic savings in the future is a key variable in determining at what rates the country will be able to grow. The projections indicate that, unless the domestic saving rate increases, the level of external indebtedness will be such that it will jeopardize the country's growth goals. It is also postulated that the debt level in 1981 will be one of the highest in recent years, indicating that possibly a major macroeconomic adjustment will be required in 1982 to reduce the current account deficit to more tolerable levels.
Edwards, S. (1982). Deuda externa, ahorro doméstico y crecimiento económico en Chile : una perspectiva de largo plazo : 1982-1990. Estudios Internacionales, 15(59), p. 260–275. https://doi.org/10.5354/0719-3769.1982.15982
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