Recent crises in emerging markets have been heavily driven by
balance-sheet or net-worth effects. Episodes in countries as far-flung
as Indonesia and Argentina have shown that exchange rate adjustments
that would normally help to restore balance can be destabilizing, even
catastrophic, for countries whose debts are denominated in foreign
currencies. Many economists instinctually assume that developing
countries allow their foreign debts to be denominated in dollars, yen,
or euros because they simply don't know better. Presenting evidence
that even emerging markets with strong policies and institutions
experience this problem, Other People's Money recognizes that the
situation must be attributed to more than ignorance. Instead, the
contributors suggest that the problem is linked to the operation of
international financial markets, which prevent countries from
borrowing in their own currencies. A comprehensive analysis of the
sources of this problem and its consequences, Other People's Money
takes the study one step further, proposing a solution that would
involve having the World Bank and regional development banks
themselves borrow and lend in emerging market currencies.
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Produktdetaljer
ISBN
9780226194578
Publisert
2018
Utgave
1. utgave
Utgiver
Vendor
University of Chicago Press
Språk
Product language
Engelsk
Format
Product format
Digital bok
Forfatter