This paper investigates how government debt affects exchange rate behavior. In a two-country general …-equilibrium setting, it shows that the exchange rate is directly related to the effective price of public debt. Changes in the present …

increase income inequality may temporarily boost a country's income growth rate. Briefly put, a change in policy that reduces …

increase income inequality may temporarily boost a country’s income growth rate. Briefly put, a change in policy that reduces …

. In particular, the article reveals that debt financed government spending is a viable stabilization tool and can improve …

The importance of currency and maturity mismatches in the debt structure of emerging markets is an issue that can … theoretical and empirical level. We show that if (i) a significant share of the debt is denominated in foreign currency -creating … maturity mismatch. In particular, higher economic or political uncertainty tightens solvency constraints and tilts the debt …

In a simultaneous equations with error components framework, we analyze the institutions-growth relationship. We … the direct and indirect effects of institutions on growth. We find that the effects of political freedom on total factor …