Download or read book The Impact of Exchange Rate Changes Between Key Currencies on the Debt Structure and Debt Service Burden of Developing Countries written by Helmut W. Mayer and published by . This book was released on 1987 with total page 24 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book The Impact of Exchange Rate Changes Between Key Currencies on the Debt Structure and Debt Service Burden of Developing Countries written by Mayer and published by . This book was released on 1984 with total page 15 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Debt Deficits and Exchange Rates written by Helmut Reisen and published by Edward Elgar Publishing. This book was released on 1994-01-01 with total page 264 pages. Available in PDF, EPUB and Kindle. Book excerpt: 'The collection of essays would provide an excellent supplement to course texts by emphasising the practical applications of theoretical ideas to contemporary international issues.' - Nick Snowden, The Economic Journal '. . . this volume provides an interesting collection of papers for those seeking a better understanding of the financial aspects of LDEs' relations with the rest of the world and, in particular, for those wishing to explore the vastly different experience with foreign borrowing of East Asia, on the one hand, and Latin America, on the other.' - Ross McLeod, Asian-Pacific Economic Literature Debt, Deficits and Exchange Rates presents recent work by Helmut Reisen on current international monetary problems in East Asia and Latin America. Written over the last four years, these papers are readily accessible and of immediate policy relevance.
Download or read book Financial Development Exchange Rate Fluctuations and Debt Dollarization A Firm Level Evidence written by Minsuk Kim and published by International Monetary Fund. This book was released on 2019-08-02 with total page 42 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper examines how financial development influences the debt dollarization of nonfinancial firms in a sample of emerging market economies (EMEs). The macroeconomic channels are identified from an optimal portfolio allocation model and assessed empirically using the accounting information of nonfinancial firms from 21 EMEs during 2009–2017. The results show that financial development, measured by the private credit-to-GDP ratio, mainly reduces the influence of exchange rate volatility in determining a firm's debt currency composition, among other channels. Furthermore, the effect of exchange rate volatility becomes statistically insignificant beyond an estimated threshold credit-to-GDP ratio of 100 percent.
Download or read book Adjustment Investment and the Real Exchange Rate in Developing Countries written by and published by World Bank Publications. This book was released on with total page 49 pages. Available in PDF, EPUB and Kindle. Book excerpt: LDC adjustment packages Riccardo Faini and Jaime de Melo Developing countries have been hit by a fall in their terms of trade, high real interest rates on their external debt, and a drought in commercial lending from abroad. Their subsequent adjustment packages, often supported by loans from the IMF and World Bank, focused on a sharp real exchange rate depreciation to restore external balance and a host of microeconomic reforms to secure a simultaneous supply-side improvement. This paper examines the success of these ‘adjustment with growth' packages in a large sample of developing countries. We find these packages have been much more successful in LDCs which export manufactures than they have in those concentrating on primary exports (primarily low-income African countries); the latter have not resumed sustainable growth, and most of their external adjustment has arisen from expenditure reduction, not an increase in supply. The longer-term prospects for manufacturing exporters are also brighter: there we detect signs of increased efficiency and a smaller decline in investment than in primary exporters. But we also find that a high external debt burden and an unstable macroeconomic environment impede investment in all LDCs. In the longer term, adjustment with growth packages will succeed only if they are accompanied by a more stable macroeconomic environment and appropriate debt relief
Download or read book Economic Development and World Debt written by Soumitra Sharma and published by Springer. This book was released on 1989-07-03 with total page 455 pages. Available in PDF, EPUB and Kindle. Book excerpt: The papers presented here were first given at the International Conference of Economists at the University of Zagreb in Yugoslavia. The book contains a rare selection of divergent theoretical and practical views on the acute problem of international debt and its repercussions on world economic growth at large and the developing countries in particular.
Download or read book Exchange Rate Policy and Debt Crises in Emerging Economies written by Mr.Samir Jahjah and published by International Monetary Fund. This book was released on 2003-03-01 with total page 23 pages. Available in PDF, EPUB and Kindle. Book excerpt: We explore a model intended to capture the interaction between exchange rate policy, fiscal policy, and outright default on foreign-currency denominated debt. We examine how the exchange rate affects the supply of short-term debt facing the government. We show that under a credible hard peg (currency board), default is a more likely outcome, even without an exceptionally large short-term debt, precisely because a devaluation is not an option. In a more conventional fixed peg, it can be optimal for the government to choose a level of the exchange rate that would be likely to result in partial or complete debt default. Depending on the exchange rate regime, multiple equilibria exist, in one of which the interest rate is high, the exchange rate is overvalued, output is low, and default is high. Under a hard peg, there is a unique equilibrium.
Download or read book Global Waves of Debt written by M. Ayhan Kose and published by World Bank Publications. This book was released on 2021-03-03 with total page 403 pages. Available in PDF, EPUB and Kindle. Book excerpt: The global economy has experienced four waves of rapid debt accumulation over the past 50 years. The first three debt waves ended with financial crises in many emerging market and developing economies. During the current wave, which started in 2010, the increase in debt in these economies has already been larger, faster, and broader-based than in the previous three waves. Current low interest rates mitigate some of the risks associated with high debt. However, emerging market and developing economies are also confronted by weak growth prospects, mounting vulnerabilities, and elevated global risks. A menu of policy options is available to reduce the likelihood that the current debt wave will end in crisis and, if crises do take place, will alleviate their impact.
Download or read book Developing Country Debt written by Helmut Reisen and published by Development Centre of the Organisation for Economic Co-operation and Development ; Washington, D.C. : OECD Publications and Information Centre. This book was released on 1988 with total page 212 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Improving the Currency Composition of External Debt written by Ken Kroner and published by . This book was released on 1989 with total page 58 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Guidelines for Public Debt Management Amended written by International Monetary Fund and published by International Monetary Fund. This book was released on 2003-09-12 with total page 39 pages. Available in PDF, EPUB and Kindle. Book excerpt: NULL
Download or read book Essays on Exchange Rates and Debt in International Economies written by Pak Yeung Wu and published by . This book was released on 2020 with total page 342 pages. Available in PDF, EPUB and Kindle. Book excerpt: This dissertation consists of three separate but interconnected essays on exchange rates and debt in international economies. The first chapter studies sovereign debt pricing in the presence of foreign-currency (FC) denominated corporate debt. We find that foreign currency corporate external debt empirically explains sovereign credit spreads in emerging countries, even after controlling for sovereign debt and global factors. Decomposing sovereign credit spreads into their default premium (default probability) and risk premium components, we find that a 1% increase in FC corporate external debt is associated with a 5 basis point increase in the sovereign risk premium but a small and insignificant change in the sovereign default premium. We incorporate a productive corporate sector and risk-averse foreign lenders into a quantitative sovereign default model. An increase in FC corporate external debt has three effects on tax revenue, and thus sovereign spreads. It increases the mean of tax revenue due to higher investment, increases the variance of tax revenue due to higher exposure to exchange rate risk, and changes the covariance of sovereign defaults and the state of foreign lenders due to the safe currency property of FC. The first two effects counteract each other and help explain the insignificant change in the sovereign default premium, while the third effect results in a higher sovereign risk premium. Corporates do not internalize their effect on sovereign debt pricing, leaving room for policy improvement. The second chapter studies exchange rate determination. We find strong empirical evidence that economic fundamentals can well account for nominal exchange rate movements. The important innovation is that we include the liquidity yield on government bonds as an explanatory variable. We find impressive evidence that changes in the liquidity yield are significant in explaining exchange rate changes for all the G10 countries. Moreover, after controlling for liquidity yields, traditional determinants of exchange rates -- adjustment toward purchasing power parity and monetary shocks -- are also found to be economically and statistically significant. We show how these relationships arise out of a canonical two-country New Keynesian model with liquidity returns. Additionally, we find a role for sovereign default risk and currency swap market frictions. The third chapter studies the implications of a change in debt currency denomination in emerging market corporate sector. Several emerging markets have graduated from the "original sin" and are able to borrow abroad in their local currency. This paper provides a two-country model-based evaluation of how the shift from foreign currency to local currency debt doesn't eliminate the original sin concern, which morphs into an"original sin redux" (Carsten and Shin 2019). As long as EMs still rely on foreign intermediated funding, the currency mismatch problem merely shifts to the balance sheet of financially constrained global lenders, and exchange rate movements affect their capacity to lend. We find that a large domestic investor base can cushion the impact of external shocks, and foreign exchange intervention targeted at improving the balance sheet of the financial sector proves to be a useful addition to the policy kit of central banks.
Download or read book Variability in the Exchange Rates of Key Currencies in the 1980s written by Gerardo S. Tison and published by . This book was released on 1987 with total page 22 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Fiscal Policy in Open Developing Economies written by Mr.Vito Tanzi and published by International Monetary Fund. This book was released on 1990-06-15 with total page 244 pages. Available in PDF, EPUB and Kindle. Book excerpt: Based on papers presented at the 44th Congress of the international Institute of Public Finance, this book, edited by Vito Tanzi, deals with public finance and macroeconomic policy in open, developing economies, with case studies of Chile, Mexico, Turkey, Korea, and the Arab oil exporting countries.
Download or read book U S Dollar Currency Premium in Corporate Bonds written by John Caramichael and published by International Monetary Fund. This book was released on 2021-07-12 with total page 34 pages. Available in PDF, EPUB and Kindle. Book excerpt: We isolate a U.S. dollar currency premium by comparing corporate bonds issued in the dollar and the euro by firms o utside t he U .S. a nd e uro a rea. We make s everal empirical observations that dissect the perceived advantage of borrowing in the dollar. First, while the dollar dominates global debt issuance, borrowing costs in the dollar are more expensive without a currency hedge and about the same with a currency hedge when compared to the euro. This observed parity in currency-hedged corporate borrowing stands in contrast to the persistent deviation from covered interest parity in risk-free rates. Second, we observe a dollar safety premium in relative hedged borrowing costs, found in the subset of bonds with high credit ratings and short maturities, attributes similar to those of safe sovereigns. Finally, we find that firms flexibly adjust the currency mix of their debt issuance depending on the relative borrowing cost between dollar and euro debt. In sum, the disproportionate demand for U.S. dollar debt is reflected in higher issuance volumes that drive up the currency hedged dollar borrowing costs such that at the margin they equate to euro borrowing costs.
Download or read book Sovereign Debt Restructurings 1950 2010 written by Mr.Udaibir S. Das and published by International Monetary Fund. This book was released on 2012-08-01 with total page 128 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper provides a comprehensive survey of pertinent issues on sovereign debt restructurings, based on a newly constructed database. This is the first complete dataset of sovereign restructuring cases, covering the six decades from 1950–2010; it includes 186 debt exchanges with foreign banks and bondholders, and 447 bilateral debt agreements with the Paris Club. We present new stylized facts on the outcome and process of debt restructurings, including on the size of haircuts, creditor participation, and legal aspects. In addition, the paper summarizes the relevant empirical literature, analyzes recent restructuring episodes, and discusses ongoing debates on crisis resolution mechanisms, credit default swaps, and the role of collective action clauses.
Download or read book Analytical Issues in Debt written by Mr.Peter Wickham and published by International Monetary Fund. This book was released on 1989-03-15 with total page 430 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book, edited by Jacob A. Frenkel, Michael P. Dooley, and Peter Wickham, presents a sample of the work of the IMF and that of world-renowned scholars on the analytical issues surrounding the explosion of countries with debt-servicing difficulties and describes debt initiatives and debt-reduction techniques that hold the best promise for finding a lasting solution to the problems of debtor countries.
