Capraro, Santiago; Perrotini, Ignacio - In: Cambridge Journal of Economics 37 (2013) 3, pp. 627-651
A Domar–Pasinetti model of an emerging-market open economy with output growth endogenous to aggregate demand is presented, with foreign debt, interest and exchange rates playing a relevant role in the dynamics of the debt-to-GDP ratio (d). The model is used to assess the macroeconomic effects...