Debt sustainability and exchange stabilisation: Towards a new theory
South African Journal of Economic and Management Sciences
| Field | Value | |
| Title | Debt sustainability and exchange stabilisation: Towards a new theory | |
| Creator | Basdevant, Olivier de Wet, Theuns | |
| Description | The sustainability of debt is a crucial issue in developing and transitional economies. In this paper, it shows that a bubble in the real exchange rate could result in a sudden collapse in the sustainability of a country's debt. Furthermore, it is shown that monetary authorities may be unable to control the exchange rate, as its dynamics also depends on that of the debt. Hence, the only feasible policy measure to stabilise the real exchange rate is to increase domestic non-price competitiveness to ensure an improvement in the trade balance of the economy. | |
| Publisher | AOSIS Publishing | |
| Date | 2000-09-30 | |
| Identifier | 10.4102/sajems.v3i3.2622 | |
| Source | South African Journal of Economic and Management Sciences; Vol 3, No 3 (2000); 436-445 2222-3436 1015-8812 | |
| Language | eng | |
| Relation |
The following web links (URLs) may trigger a file download or direct you to an alternative webpage to gain access to a publication file format of the published article:
https://sajems.org/index.php/sajems/article/view/2622/1430
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