This paper analyzes the robustness of
the traditional foreign borrowing maxim: "borrow to
finance a temporary shock, adjust to a permanent one".
Dynamic optimizing simulations are used to illustrate the
benefits of foreign borrowing and to trace out the evolution
of macroeconomic variables, particularly foreign debt, in
response to external variables. We find that, as real world
disturbances often involve complex intertemporal
correlations...
انظر المزيد
تفاصيل
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Kharas, HomiHisanobu Shishido
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1985/2/28
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ورقة عمل إدارية
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CPD8504
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1
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1
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2017/12/02
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Disclosed
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Foreign borrowing and macroeconomic adjustment to external shocks
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Commodity prices; Commodity trade; Economic structure; External debt; External shocks; Interest rates; Macroeconomic planning