haku: @author Bohn, H. / yhteensä: 5
viite: 4 / 5
| Tekijä: | Bohn, H. |
| Otsikko: | A positive theory of foreign currency debt |
| Lehti: | Journal of International Economics
1990 : NOV, VOL. 29:3/4, p. 273-292 |
| Asiasana: | FOREIGN DEBTS INVESTMENT CURRENCY MARKETS MONETARY POLICY HEDGING FINANCIAL THEORY GOVERNMENT UNCERTAINTY |
| Kieli: | eng |
| Tiivistelmä: | The case for foreign currency debt is based on the interaction of hedging and incentive considerations. The model describes a game between the government of country its individuals small and investors. The country's problem is to decide how much and at what terms to borrow from abroad. It is shown, how consumption is determined under the influence of output uncertainty and debt policy. Hedging against macroeconomic shocks is discussed, optimal quantities of nominal and foreign currency debt are calculated. Optimal monetary and debt policies are derived jointly in an environment in which the government cannot precommit future policy. Foreign currency debt may serve as a hedge against output fluctuations and replace domestic currency debt. |
SCIMA