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Mitigating the Economic Costs of Currency Crises in Developing Countries: The Role of Public and Publicly Guaranteed Debt Inflows

Nommels, Carsten Tete LU (2015) NEKN01 20151
Department 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)
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author
Nommels, Carsten Tete LU
supervisor
organization
course
NEKN01 20151
year
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},
  keyword      = {currency crises,economic costs,debt flows,public guarantees,official creditors},
  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},
}