The conference papers contained in this book address the problem of international debt. They have been organized into four sections. In the first, microeconomic theories of international borrowing and lending are developed and applied to the current situation. Sovereign risk is an important feature in these analyses. The second section deals in greater depth with bank behavior, the structure of financial markets, and recent suggestions for structural reform of these markets. Section III contains an econometric analysis of the precursors of debt repayment problems and asks whether they can be predicted in advance with the use of available macroeconomic information. Case studies of Argentina, Brazil, Chile, Korea, and Mexico are studied in the final section to determine how and why they experienced debt-servicing problems in 1982-1984. The roles of domestic macroeconomic policies as well as of external shocks are carefully considered.