Emerging Countries' External Debt. How Should One Neutralize Hard-Currency Volatility?
Instability ?' and, in particular, the volatility of hard-currency exchange rates ?' is a strong characteristic of the financial global environment. Volatility has implications on the emerging economies?' competitiveness and external-debt burden. This paper develops a simple model centered on debt dynamics. We show that an emerging economy can stabilize the domestic value of its external debt using three parameters: the currency composition of its debt, its exchange-rate regime, and the geographic structure of its trade.
Year of publication: |
2003
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Authors: | Laurent, Pierre ; Meunier, Nicolas ; Miotti, Luis ; Quenan, Carlos ; Seltz, Véronique |
Published in: |
Revue économique. - Presses de Sciences-Po. - Vol. 54.2003, 5, p. 1033-1055
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Publisher: |
Presses de Sciences-Po |
Saved in:
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