Growth, External Debt and Sovereign Risk in a Small Open Economy

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This paper constructs and analyzes an optimizing model of a highly-indebted small open economy. An important innovation in the model is the incorporation of sovereign risk through the specification of an upward-sloping foreign debt supply function. The model is used to examine the interaction between external debt and growth in response to... READ MORE...

Publication date: June 1989
ISBN 9781451969474
$10.00

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