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goals, and that local currency (peso) debt is better for the borrower (Bolivia), and dollar debt is better for the lender … period, we show that when persistent gains to risk sharing hold, America must gain from Peso debt but Bolivia might lose …. Thus the presumption that peso debt is more favorable to Bolivia than to America is false. Our framework of optimal …
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This study examines the persistence of currency substitution in Nigeria by applying the Bounds testing approach to cointegration and including a ratchet variable in the estimated Autoregressive Distributed Lag (ARDL) model. Empirical results show that factors such as exchange rate risks,...
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