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Impact du fardeau virtuel de la dette sur le taux de change réel d'équilibre des pays en développement Author info | Abstract | Publisher info | Download info | Related research | Statistics Babacar XSENE (PARIS DAUPHINE UNIVERSITY)
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The main objective of this paper is to study the relationship between external public debt and equilibrium real exchange rate in developing countries. Using a extension of Obstfeld & Rogoff (1995) model we show that debt overhang tend to appreciate real exchange rate in the long run (Krugman (1979), Sargent & Wallace (1989)). The relationship between debt overhang and real exchange rate is obtaining with endogeneity of economic growth.
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Paper provided by EconWPA in its series Macroeconomics with number
0501014.
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Length: 27 pages
Date of creation: 09 Jan 2005Date of revision:
Handle: RePEc:wpa:wuwpma:0501014Note: Type of Document - pdf; pages: 27Contact details of provider: Web page: http://129.3.20.41
For technical questions regarding this item, or to correct its listing, contact: (EconWPA).
Keywords: Public debt ; debt overhang ; real exchange rate ; new open macro economics ; growth ; Find related papers by JEL classification: F31 - International Economics - - International Finance - - - Foreign Exchange F34 - International Economics - - International Finance - - - International Lending and Debt Problems F41 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Open Economy Macroeconomics
References listed on IDEAS Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile , click on "citations" and make appropriate adjustments.:
Agenor, Pierre-Richard, 1998.
"Capital inflows, external shocks, and the real exchange rate ,"
Journal of International Money and Finance ,
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[Downloadable!] (restricted)
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"Growth and external debt under risk of debt repudiation ,"
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Other versions: Philip R. Lane & Gian Maria Milesi-Ferretti, 2000.
"The Transfer Problem Revisited: Net Foreign Assets and Real Exchange Rates ,"
Working Papers
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[Downloadable!]
Other versions:
Lane, Philip R. & Milesi-Ferretti, Gian Maria, 2000.
"The Transfer Problem Revisited: Net Foreign Assets and Real Exchange Rates ,"
CEPR Discussion Papers
2511, C.E.P.R. Discussion Papers.
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"The Transfer Problem Revisited: Net Foreign Assets and Real Exchange Rates ,"
IMF Working Papers
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"The Transfer Problem Revisited: Net Foreign Assets and Real Exchange Rates ,"
The Review of Economics and Statistics ,
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[Downloadable!] (restricted) Mark P. Taylor & Michael J. Artis, 1993.
"DEER Hunting - Misalignment, Debt Accumulation, and Desired Equilibrium Exchange Rates ,"
IMF Working Papers
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Sargent, Thomas J & Wallace, Neil, 1982.
"The Real-Bills Doctrine versus the Quantity Theory: A Reconsideration ,"
Journal of Political Economy ,
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[Downloadable!] (restricted)
Obstfeld, Maurice & Rogoff, Kenneth, 1995.
"Exchange Rate Dynamics Redux ,"
CEPR Discussion Papers
1131, C.E.P.R. Discussion Papers.
[Downloadable!] (restricted)
Other versions:
Maurice Obstfeld and Kenneth Rogoff., 1995.
"Exchange Rate Dynamics Redux ,"
Center for International and Development Economics Research (CIDER) Working Papers
C95-048, University of California at Berkeley.
Maurice Obstfeld & Kenneth Rogoff, 1996.
"Exchange Rate Dynamics Redux ,"
NBER Working Papers
4693, National Bureau of Economic Research, Inc.
[Downloadable!] (restricted) Obstfeld, Maurice & Rogoff, Kenneth, 1995.
"Exchange Rate Dynamics Redux ,"
Journal of Political Economy ,
University of Chicago Press, vol. 103(3), pages 624-60, June.
[Downloadable!] (restricted) Khalid Sekkat & Aristomène Varoudakis, 1998.
"Exchange-Rate Management and Manufactured Exports in Sub-Saharan Africa ,"
OECD Development Centre Working Papers
134, OECD, Development Centre.
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Other versions: Joannes Mongardini, 1998.
"Estimating Egypt's Equilibrium Real Exchange Rate ,"
IMF Working Papers
98/5, International Monetary Fund.
Lane, Philip R., 2001.
"The new open economy macroeconomics: a survey ,"
Journal of International Economics ,
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[Downloadable!] (restricted)
Other versions: Virginie Coudert, 1999.
"Comment definir un taux de change d'equilibre pour les pays emergents ? ,"
Economie Internationale ,
CEPII research center, issue 1Q, pages 45-66.
[Downloadable!]
Edwards, Sebastian, 1989.
"Exchange Rate Misalignment in Developing Countries ,"
World Bank Research Observer ,
Oxford University Press, vol. 4(1), pages 3-21, January.
Other versions: Catherine A. Pattillo & Hélène Poirson & Luca Antonio Ricci, 2002.
"External Debt and Growth ,"
IMF Working Papers
02/69, International Monetary Fund.
Paul Krugman, 1988.
"Adjustment in the World Economy ,"
NBER Working Papers
2424, National Bureau of Economic Research, Inc.
[Downloadable!] (restricted)
John T. Cuddington, 1997.
"Analysing the Sustainability of Fiscal Deficits in Developing Countries ,"
International Finance
9706001, EconWPA.
[Downloadable!]
Devarajan, Shantayanan & Lewis, Jeffrey D & Robinson, Sherman, 1993.
"External Shocks, Purchasing Power Parity, and the Equilibrium Real Exchange Rate ,"
World Bank Economic Review ,
Oxford University Press, vol. 7(1), pages 45-63, January.
Giovanni Ganelli, 2002.
"The New Open Economy Macroeconomics of Government Debt ,"
Trinity Economics Papers
200214, Trinity College Dublin, Department of Economics.
[Downloadable!]
Other versions:
Ganelli, Giovanni, 2003.
"The New Open Economy Macroeconomics of Government Debt ,"
Royal Economic Society Annual Conference 2003
83, Royal Economic Society.
[Downloadable!] Ganelli, Giovanni, 2005.
"The new open economy macroeconomics of government debt ,"
Journal of International Economics ,
Elsevier, vol. 65(1), pages 167-184, January.
[Downloadable!] (restricted)
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