Goh, Ai Ting; Olivier, Jacques - C.E.P.R. Discussion Papers - 2001
This Paper aims to explain the sharp rise in unhedged foreign borrowing by South East Asian corporations in the few … borrowing, they raise the cost of devaluation to the central bank, which in turn makes foreign borrowing more attractive …. Consequently, a small shock to fundamentals may move the economy from a region of parameter values where no foreign borrowing is …