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This paper derives the optimal composition of the Brazilian public debt by looking at the relative impact of the risk and cost of alternative debt instruments on the probability of missing the stabilization target. This allows to price risk against the expected cost of debt service and thus to...
Persistent link: https://www.econbiz.de/10013226189
Studying the recent experience of Brazil the paper explains how default risk is at the centre of the mechanism through …
Persistent link: https://www.econbiz.de/10013313682