This paper examines possible ways for a developing country to finance budget deficits from domestic resources. It does … availability of foreign-currency deposits may have reduced the ability of the government to finance itself. …

In this paper, we study the impact of labor market restructuring and foreign direct investment on the banking sector … exchange rate or an increase in debt issue to finance the government deficit, as compared to a benchmark scenario in which … and increasing the tax rate on labor. Such policies can prevent banking failures by raising the return to capital. It is …