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Impact du fardeau virtuel de la dette sur le taux de change réel d'équilibre des pays en développement

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  • Babacar XSENE

    (PARIS DAUPHINE UNIVERSITY)

Abstract

The main objective of this paper is to study the relationship between external public debt and equilibrium real exchange rate in developing countries. Using a extension of Obstfeld & Rogoff (1995) model we show that debt overhang tend to appreciate real exchange rate in the long run (Krugman (1979), Sargent & Wallace (1989)). The relationship between debt overhang and real exchange rate is obtaining with endogeneity of economic growth.

Suggested Citation

  • Babacar XSENE, 2005. "Impact du fardeau virtuel de la dette sur le taux de change réel d'équilibre des pays en développement," Macroeconomics 0501014, University Library of Munich, Germany.
    • Handle: RePEc:wpa:wuwpma:0501014
    Note: Type of Document - pdf; pages: 27
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    References listed on IDEAS

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    Cited by:

    1. Kouladoum, Jean-Claude, 2018. "External debts and real exchange rates in developing countries: evidence from Chad," MPRA Paper 88440, University Library of Munich, Germany.
    2. Kouladoum Jean-Claude & Dombou T. Dany R., 2019. "External Debts and Real Exchange Rates in Developing Countries: Evidence from Chad," Sumerianz Journal of Economics and Finance, Sumerianz Publication, vol. 2(1), pages 1-6, 01-2019.

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    More about this item

    Keywords

    Public debt; debt overhang; real exchange rate; new open macro economics ; growth;
    All these keywords.

    JEL classification:

    • F31 - International Economics - - International Finance - - - Foreign Exchange
    • F34 - International Economics - - International Finance - - - International Lending and Debt Problems
    • F41 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Open Economy Macroeconomics

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