fiscal authorities can obtain temporary money financing of deficits. During a crisis domestic interest rates increase …, reflecting the expected devaluation. Rather than selling debt at punitive rates, fiscal authorities will turn to temporary money … debt maturing during the crisis is sufficiently small - a condition that can be met by reducing the stock of public debt …

models (which include the current account) might be unstable because of the cumulation of debt service obligations, and that …

Regressions of ex-post changes in floating exchange rates on appropriate interest differentials typically imply that … the high interest rate currency tends to appreciate - the `forward discount puzzle'. Using data from the European Monetary …, deviations from uncovered interest parity appear to vary in a way that is dependent upon the exchange rate regime. By using the …

restrained at the beginning of the period by the debt overhang associated with reparations and by the post World War I disruption … loans to Central Europe and reconstruction of the gold standard system was needed to initiate long-term capital flows. A … 1940s and 1950s. I find no evidence that countries which interrupted debt service in the 1930s found it more difficult to …

appear to benefit from the ability to avail themselves of an orderly restructuring process. In contrast, less credit … restructuring are offset by the moral hazard and default risk associated with the presence of renegotiation-friendly loan provisions. …

further loans to help service the debt. Since deposits are mainly short-term and loans are long-term, the short-run demand for … liabilities dominated the United States capital account. These were also years when United States banks were locked into large … long-term foreign dollar loans to developing countries which, to make matters worse, were highly risky and often required …

, showing that the long-term real interest rate necessarily rises if inflation rises on impact, in response to an increase in …