Mehl, Arnaud; Reynaud, Julien - Centre d'Économie de la Sorbonne, Université Paris 1 … - 2008
This paper explains why public domestic debt composition in emerging economies can be risky, namely in foreign currency …, with a short maturity or indexed. It analyses empirically the determinants of these risk sources separately, developing a … risk. Only inflation impacts all types of risky debt, underscoring the overarching importance of monetary credibility to …