According to Ziesemer, Thomas (1995) in his study about the growth with imported capital goods, limited export and demand, and foreign debt, there is an implication of introducing imported inputs and elasticity of export demand into the neoclassical growth model for the analysis of long-run growth.
Epstein and Gein (1994) said that the world faces the prospect of a new kind of debt crisis. An actual deficit is still conceivable, but something shy of default is even more possible.
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