1. The origins of the 1980s Debt Crisis can be traced back to the acute shocks to the international monetary system in the 1970s: the collapse of the Bretton Wood system; the major oil prices hikes; and the substantial liberalization of international finance. The associated build-up of imbalances and vulnerabilities during this period ended abruptly in the early 1980s, and the IMF had to deal with its first systemic debt crisis. Given the novelty of this event, it took time for debtors, creditors, and the international community to understand the magnitude of the problems faced by these indebted economies. Reforms to the crisis-resolution framework occurred gradually and often in a piecemeal fashion. But the reforms made during the 1980s set the foundation for the IMF’s policies and principles today, remaining robust despite a continually changing landscape.