PUBLIC DEBT MATURITY AND CURRENCY CRISES
Paul Levine (),
Alex (Alexandros) Mandilaras and
Jun Wang
Scottish Journal of Political Economy, 2008, vol. 55, issue 1, 79-106
Abstract:
The theory underlying the effect of debt structure on the probability of a currency crisis and the slope of the yield curve was developed in Benigno and Missale (2004). In this paper, we provide the empirical evidence to support their model's predictions. In a dynamic panel data framework, we produce generalized method of moments estimates that give substantial support to the hypothesis that the role of short‐term debt depends on how a devaluation affects the reputation of the policymaker and the real value of public debt. In addition to the empirical analysis, we generalize the theoretical framework to allow for the presence of non‐deflatable debt and, for completeness, examine the case where the monetary authority can fully commit itself to an escape clause monetary rule.
Date: 2008
References: Add references at CitEc
Citations: View citations in EconPapers (1)
Downloads: (external link)
https://doi.org/10.1111/j.1467-9485.2008.00444.x
Related works:
Working Paper: Public Debt Maturity and Currency Crises (2006) 
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
HTML/Text
Persistent link: https://EconPapers.repec.org/RePEc:bla:scotjp:v:55:y:2008:i:1:p:79-106
Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=0036-9292
Access Statistics for this article
Scottish Journal of Political Economy is currently edited by Tim Barmby, Andrew Hughes-Hallett and Campbell Leith
More articles in Scottish Journal of Political Economy from Scottish Economic Society Contact information at EDIRC.
Bibliographic data for series maintained by Wiley Content Delivery ().