Title of article
Why a government might want to consider foreign currency denominated debt
Author/Authors
Miller، نويسنده , , Victoria ، نويسنده ,
Issue Information
روزنامه با شماره پیاپی سال 1997
Pages
4
From page
247
To page
250
Abstract
As the real value of foreign currency denominated debt is not affected by domestic inflation, such debt eliminates the discretionary incentive to inflate. This in turn will reduce the expected and thus equilibrium rate of inflation. However, as foreign currency debt is affected by foreign inflation, such debt could be an attractive alternative to indexed bonds if the foreign country inflates when the domestic one would like to.
Keywords
Debt denomination , Inflation commitment
Journal title
Economics Letters
Serial Year
1997
Journal title
Economics Letters
Record number
434327
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