China. Without monetary autonomy to devalue its overvalued currency, inland China has to turn to debt issuance, leading to … government debt. Our findings suggest that a 1% increase in regional currency overvaluation prompts the new issuance of local … government debt by approximately 0.2%. This effect can be magnified by a higher degree of labor market immobility and spatial …

We use a novel approach to identify economic developments that drive exchange rates in the long run. Using a panel of … six quarterly U.S. bilateral real exchange rates Australia, Canada, the euro, Japan, New Zealand and the United Kingdom …, and cointegration analysis points to a long-run statistical relationship with the U.S. debt-to-GDP ratio, relative to all …

show that growth is higher if the debt to GDP ratio is below 60 % compared to values above it. Moreover, a comparison with …