Yet it Endures: The Persistence of Original Sin

نویسندگان

چکیده

Abstract Notwithstanding announcements of progress, “international original sin” (the denomination external debt in foreign currency) remains a persistent phenomenon emerging markets. Although some middle-income countries have succeeded developing markets local-currency sovereign and attracting investors, they continue to hedge their currency exposures through transactions with local pension funds other resident investors. The result is shift the locus mismatches within economies but not eliminate them. Other limited sin by limiting borrowing, passing up valuable investment opportunities pursuit stability. We document these trends, analyzing regional global aggregates national case studies. Our conclusion that there for an international initiative address risk low- so can more fully exploit economic development opportunities.

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ژورنال

عنوان ژورنال: Open Economies Review

سال: 2022

ISSN: ['1573-708X', '0923-7992']

DOI: https://doi.org/10.1007/s11079-022-09704-3