The paper presents evidence from the past three years which indicates that the exchange rate between the private ECU and the official ECU Basket can deviate substantially from par. The value of the private ECU is driven by expectations that a future European Central Bank will enforce par...

During the past fifteen years, the international bank-loan market has replaced the international bond and direct investment markets as the major source of private development capital. In addition, rescheduling external debt, normally in the context of a comprehensive stabilization program, has...

The finding that countries' investment rates are highly correlated with their national saving rates has been confirmed by many studies. Our interpretation of the saving-investment evidence is that the hypothesis of a high degree of substitutability for claims on physical capital located in...

A simple model is presented that clarifies the conditions under which intervention policy, defined as management of the currency composition of nonmonetary debt, can be effective in influencing exchange rates. When defined in this way, intervention includes any government transaction, or set of...

This paper presents a framework for evaluating the relative contributions of different creditors in cases where only partial payments can be made by the debtor country. A methodology is developed to calculate partial payments--or, alternatively put, to determine residual financing. By focusing...

A new aggregation scheme used to measure the sources of fiscal financing of indebted countries suggests that the seniority of domestic debt improved at the expense of foreign bank debt during the late 1980s. This paper argues that this was the revenue-maximizing response of governments to...

This paper studies the role of domestic and foreign savings in financing capital formation in 19 industrial countries during the years after World War II. The authors' interpretation of the statistical evidence is that there is very little support for the view that, over the medium term, goods...