Barta, Zsófia; Baccaro, Lucio; Johnston, Alison - 2022
Do exchange rate regimes affect the conditions under which developed countries borrow? This paper argues that they do … credible in-built mechanism to control inflation. However, once default is seen as the most relevant risk, exchange rate … 2000s, inflation was penalized under floating and (to a lesser extent) fixed exchange rate regimes, but not in countries in …