Mitigating the Economic Costs of Currency Crises in Developing Countries: The Role of Public and Publicly Guaranteed Debt Inflows
(2015) NEKN01 20151Department of Economics
- Abstract
- The economic costs associated with currency crises following successful speculative attacks may motivate intervention by the public sector. This thesis uses macro data to examine the effects of two forms of public intervention with regard to debt inflows on the economic costs of a crisis.
On the one hand, official creditors may provide debt financing to the country’s public sector. On the other, public guarantees may be provided by the state on external borrowing done by the private sector.
Controlling for other influential factors, and using a country fixed effects approach, this study concludes that there is evidence of a negative impact of public guarantees on macroeconomic performance in the wake of a crisis, but finds evidence... (More) - The economic costs associated with currency crises following successful speculative attacks may motivate intervention by the public sector. This thesis uses macro data to examine the effects of two forms of public intervention with regard to debt inflows on the economic costs of a crisis.
On the one hand, official creditors may provide debt financing to the country’s public sector. On the other, public guarantees may be provided by the state on external borrowing done by the private sector.
Controlling for other influential factors, and using a country fixed effects approach, this study concludes that there is evidence of a negative impact of public guarantees on macroeconomic performance in the wake of a crisis, but finds evidence that the provision of debt financing to the public sector by official creditors can have a positive impact on the economy. (Less) - Popular Abstract
- The economic costs associated with currency crises following successful speculative attacks may motivate intervention by the public sector. This thesis uses macro data to examine the effects of two forms of public intervention with regard to debt inflows on the economic costs of a crisis.
On the one hand, official creditors may provide debt financing to the country’s public sector. On the other, public guarantees may be provided by the state on external borrowing done by the private sector.
Controlling for other influential factors, and using a country fixed effects approach, this study concludes that there is evidence of a negative impact of public guarantees on macroeconomic performance in the wake of a crisis, but finds evidence... (More) - The economic costs associated with currency crises following successful speculative attacks may motivate intervention by the public sector. This thesis uses macro data to examine the effects of two forms of public intervention with regard to debt inflows on the economic costs of a crisis.
On the one hand, official creditors may provide debt financing to the country’s public sector. On the other, public guarantees may be provided by the state on external borrowing done by the private sector.
Controlling for other influential factors, and using a country fixed effects approach, this study concludes that there is evidence of a negative impact of public guarantees on macroeconomic performance in the wake of a crisis, but finds evidence that the provision of debt financing to the public sector by official creditors can have a positive impact on the economy. (Less)
Please use this url to cite or link to this publication:
http://lup.lub.lu.se/student-papers/record/7994650
- author
- Nommels, Carsten Tete LU
- supervisor
- organization
- course
- NEKN01 20151
- year
- 2015
- type
- H1 - Master's Degree (One Year)
- subject
- keywords
- currency crises, economic costs, debt flows, public guarantees, official creditors
- language
- English
- id
- 7994650
- date added to LUP
- 2015-09-28 09:05:58
- date last changed
- 2015-09-28 09:05:58
@misc{7994650,
abstract = {{The economic costs associated with currency crises following successful speculative attacks may motivate intervention by the public sector. This thesis uses macro data to examine the effects of two forms of public intervention with regard to debt inflows on the economic costs of a crisis.
On the one hand, official creditors may provide debt financing to the country’s public sector. On the other, public guarantees may be provided by the state on external borrowing done by the private sector.
Controlling for other influential factors, and using a country fixed effects approach, this study concludes that there is evidence of a negative impact of public guarantees on macroeconomic performance in the wake of a crisis, but finds evidence that the provision of debt financing to the public sector by official creditors can have a positive impact on the economy.}},
author = {{Nommels, Carsten Tete}},
language = {{eng}},
note = {{Student Paper}},
title = {{Mitigating the Economic Costs of Currency Crises in Developing Countries: The Role of Public and Publicly Guaranteed Debt Inflows}},
year = {{2015}},
}