Journal articles

Financial Instability under a Flexible Exchange Rate

Year
2007
Authors
VRANCEANU Radu, BESANCENOT D.
Abstract
Many governments in developing countries contemplate the possibility of increasing the flexibility of their exchange rates despite having accumulated substantial dollar-denominated debt. Using a model of corporate dollar debt in which the future exchange rate is uncertain, this paper studies the financial risks that might arise as a consequence of increased exchange rate flexibility.
BESANCENOT, D. et VRANCEANU, R. (2007). Financial Instability under a Flexible Exchange Rate. Scandinavian Journal of Economics, pp. 291-302.