Acharya, Viral V.; Rajan, Raghuram G.; Shim, Jack - 2021
How is a developing country affected by its odious government’s ability to borrow in international markets? We examine … the dynamics of a country’s growth, consumption, and sovereign debt, assuming that the government is myopic and wants to … maximize short-term, socially unproductive, spending. Interestingly, access to external borrowing can extend the government …