Other people's money : debt denomination and financial instability in emerging market economies / edited by Barry Eichengreen and Ricardo Hausmann.

Format:

Book

Contributor:

Eichengreen, Barry J.

Hausmann, Ricardo.

Language:

English

Subjects (All):

Capital movements--Developing countries.

Capital movements.

Debts, External--Developing countries.

Debts, External.

Finance--Developing countries.

Finance.

Monetary policy--Developing countries.

Monetary policy.

Physical Description:

1 online resource (306 p.)

Edition:

1st ed.

Place of Publication:

Chicago : University of Chicago Press, 2005.

Language Note:

English

Summary:

Recent crises in emerging markets have been heavily driven by balance-sheet or net-worth effects. Episodes in countries as far-flung as Indonesia and Argentina have shown that exchange rate adjustments that would normally help to restore balance can be destabilizing, even catastrophic, for countries whose debts are denominated in foreign currencies. Many economists instinctually assume that developing countries allow their foreign debts to be denominated in dollars, yen, or euros because they simply don't know better. Presenting evidence that even emerging markets with strong policies and institutions experience this problem, Other People's Money recognizes that the situation must be attributed to more than ignorance. Instead, the contributors suggest that the problem is linked to the operation of international financial markets, which prevent countries from borrowing in their own currencies. A comprehensive analysis of the sources of this problem and its consequences, Other People's Money takes the study one step further, proposing a solution that would involve having the World Bank and regional development banks themselves borrow and lend in emerging market currencies.

Contents:

The pain of original sin

Must original sin cause macroeconomic damnation?

A fiscal perspective on currency crises and "original sin"

Original sin, balance-sheet crises, and the roles of international lending

How original sin was overcome : the evolution of external debt denominated in domestic currencies in the United States and the British dominions, 1800-2000

Old sins : exchange clauses and European foreign lending in the nineteenth century

Why do emerging economies borrow in foreign currency?

Why do countries borrow the way they borrow?

The mystery of original sin

Original sin : the road to redemption.

Notes:

Description based upon print version of record.

Includes bibliographical references and index.

ISBN:

9786612584688

9781282584686

1282584685

9780226194578

0226194574

OCLC:

635292134