International Debt and the Price of Domestic Assets /

This paper examines the behavior of indebtedness, consumption, and asset prices in a small open economy in which the foreign real interest rate depends not only on an exogenous world interest rate and on indebtedness, but also on the value of the capital stock, viewed as an implicit 'collateral...

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Bibliografiske detaljer
Hovedforfatter: Garcia-Saltos, Roberto
Andre forfattere: Auernheimer, Leonardo
Format: Tidsskrift
Sprog:English
Udgivet: Washington, D.C. : International Monetary Fund, 2000.
Serier:IMF Working Papers; Working Paper ; No. 2000/177
Online adgang:Full text available on IMF
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100 1 |a Garcia-Saltos, Roberto. 
245 1 0 |a International Debt and the Price of Domestic Assets /  |c Roberto Garcia-Saltos, Leonardo Auernheimer. 
264 1 |a Washington, D.C. :  |b International Monetary Fund,  |c 2000. 
300 |a 1 online resource (29 pages) 
490 1 |a IMF Working Papers 
500 |a <strong>Off-Campus Access:</strong> No User ID or Password Required 
500 |a <strong>On-Campus Access:</strong> No User ID or Password Required 
506 |a Electronic access restricted to authorized BRAC University faculty, staff and students 
520 3 |a This paper examines the behavior of indebtedness, consumption, and asset prices in a small open economy in which the foreign real interest rate depends not only on an exogenous world interest rate and on indebtedness, but also on the value of the capital stock, viewed as an implicit 'collateral,' and hence on the price of capital. The paper finds that the collateral effect magnifies the intensity of shocks to the economy and the duration of their impact. The collateral effect also generates additional distortions that could lead to overborrowing. The paper discusses the policy responses to these distortions. 
538 |a Mode of access: Internet 
700 1 |a Auernheimer, Leonardo. 
830 0 |a IMF Working Papers; Working Paper ;  |v No. 2000/177 
856 4 0 |z Full text available on IMF  |u http://elibrary.imf.org/view/journals/001/2000/177/001.2000.issue-177-en.xml  |z IMF e-Library