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These pressures were addressed by an increase in interest rates and a reduction of imports. This resulted in balance of payments deficits for many of the developing countries, which were paying more for oil, paying higher interest rates on the loans from the industrial countries, and finding reduced markets for their exports...

In response to this situation, the IMF created an Oil Facility in 1974, and enlarged it in 1975, to aid members in balance of payments difficulties. In addition, an Oil Facility Subsidy Account was established for the poorest countries to alleviate the cost of borrowing under the Oil Facility. During the 1970s, although the oil price shocks placed more countries in balance of payments difficulties and forced many of the developing countries to borrow not only against the Fund, but also against private banks which were receiving a surplus of OPEC petrodollars, it was generally perceived at the time that the debt cads would be short-lived...

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Controlling the Economy with Interest Rates Does it Accomplish the Task on the Consumer Side? critical assessment as to why, according to the Stability and Growth Pact, member countries of the EU should maintain deficits within 3% of their GDP. Interest Rates And Bond Valuation Interest Rates in the Economy Interest Rates Interest Rates: A Matter of Supply and Demand Tax Evasion In Developing Countries The Effects of Industrial Economic Control on Developing and Third World Countries The Fed And Interest Rates The factors determining movements in the general level of variable and fixed term interest rates in Australia term structure of interest rates Relationship between interest rates and price of bond Fed and Interest Rates Interest Rates and Other Critical Determinants of Investment Spending in Bangladesh unemployment in developing countries

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