Mitigating the Economic Costs of Currency Crises in Developing Countries: The Role of Public and Publicly Guaranteed Debt Inflows
The economic costs associated with currency crises following successful speculative attacks may motivate intervention by the public sector. This thesis uses macro data to examine the effects of two forms of public intervention with regard to debt inflows on the economic costs of a crisis. On the one hand, official creditors may provide debt financing to the country’s public sector. On the other,