Game Theory Analysis

Introduction | Cases | Strategy Analysis | Aggregate Model | Conclusion | Sources Used

Eastern Europe: Bulgaria

Action / Circumstance => Result

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• $10 billion debt (74% of GDP) => Moratorium on debt payments
• Moratorium on debt payments => Negotiations with the financial institutions (IMF / World Bank)
• Negotiations with the financial institutions => Brady plan (July 28, 1994) + IMF
• Agreeing to the Brady plan conditions =>

**Debt relief -> Guarantees needed for remainder of debt **Guarantees offered by Worl Bank and IMF -> World Bank and IMF effectively own Bulgaria's debt **Worl Bank + IMF own debt -> WB and IMF can demand specific economic reforms (dependancy)

**Increased credibility rating

• Increased credibility rating => Expected increase in investment (stabilization)

South America: Argentina

Action / Circumstance => Result

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Africa: Nigeria

Action / Circumstance => Result

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