The effect of an exchange rate devaluation on a small open economy with an external debt overhang
One reason a developing country with a relatively open economy would be hesitant to devalue its currency is the effect of the change in the official exchange rate on the government budget items related to the external debt overhang. It is shown that in an economy characterized by mark-up pricing beh...
| Published in: | The Philippine Review of Business and Economics Vol. XXVII, No. 1 (June 1990), p. 36-47. |
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| Main Author: | |
| Format: | Analytics |
| Language: | English |
| Published: |
1990.
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| Subjects: |