at Google ScholarTitle data
Herz, Bernhard ; Tong, Hui:
Debt and Currency Crises — Complements or Substitutes?
In: Review of International Economics.
Vol. 16
(2008)
Issue 5
.
- pp. 955-970.
ISSN 1467-9396
DOI: https://doi.org/10.1111/j.1467-9396.2008.00760.x
Abstract in another language
Debt and currency crises are closely interlinked through the government's intertemporal budget constraint. The default tax and the inflation/devaluation tax can be considered as alternative means of financing. Our empirical analysis finds that high-debt countries choose default rather than inflation/devaluation for financing, while a high money stock reduces the probability of debt crises. Further, we find strong evidence that debt and currency crises share common fundamental causes. Finally, there is a Granger causality running from debt crises to currency crises, but only weakly in the other direction.
Further data
| Item Type: | Article in a journal |
|---|---|
| Refereed: | Yes |
| Institutions of the University: | Faculties > Faculty of Law, Business and Economics > Department of Economics > Chair Economics I - International Economics and Finance > Chair Economics I - International Economics and Finance - Univ.-Prof. Dr. Bernhard Herz Faculties Faculties > Faculty of Law, Business and Economics Faculties > Faculty of Law, Business and Economics > Department of Economics Faculties > Faculty of Law, Business and Economics > Department of Economics > Chair Economics I - International Economics and Finance |
| Result of work at the UBT: | Yes |
| DDC Subjects: | 300 Social sciences > 330 Economics |
| Date Deposited: | 02 Apr 2015 05:59 |
| Last Modified: | 02 Apr 2015 05:59 |
| URI: | https://eref.uni-bayreuth.de/id/eprint/9768 |