Chapter 4: An integration of the real and the monetary economy
The chapter develops a two-country Stock-Flow Consistent (SFC) model with open current and capital account, in which one country has foreign debt denominated both in domestic and external currency. Several simulations are performed in order to obtain insights about the interaction and interdependence of distribution, savings and financial constraints of developing countries when faced with external debt accumulation in a foreign currency, as well as a more generally valid picture of fiscal performance, domestic savings, current account imbalances and financial flows.
You are not authenticated to view the full text of this chapter or article.
Elgaronline requires a subscription or purchase to access the full text of books or journals. Please login through your library system or with your personal username and password on the homepage.
Non-subscribers can freely search the site, view abstracts/ extracts and download selected front matter and introductory chapters for personal use.
Your library may not have purchased all subject areas. If you are authenticated and think you should have access to this title, please contact your librarian.