• 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