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The Effect of Exchange Rate Devaluation on a Small Open Economy with an External Debt Overhang

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  • Yap, Josef T.

Abstract

Devaluation in the presence of an external debt will generally lead to a fall in real output and a rise in prices. Central to this paper is the model that has allowed the author to arrive to the above conclusion.

Suggested Citation

  • Yap, Josef T., 1988. "The Effect of Exchange Rate Devaluation on a Small Open Economy with an External Debt Overhang," Working Papers WP 1988-09, Philippine Institute for Development Studies.
    • Handle: RePEc:phd:wpaper:wp_1988-09
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    File URL: https://www.pids.gov.ph/publication/working-papers/the-effect-of-exchange-rate-devaluation-on-a-small-open-economy-with-an-external-debt-overhang
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    Keywords

    exchange rate policy; devaluation;

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