Factors Determining External Debt : An Intertemporal Study

Gerhard Rübel

ISBN 10: 3540505040 / ISBN 13: 9783540505044

Published by Springer, Springer Berlin Heidelberg, 1988

About this Item

Druck auf Anfrage Neuware - Printed after ordering - Against the background of the international debt problem which originated with the oil shocks of the seventies, this book undertakes a theoretical analysis of the factors determining aggregate external debt, using the example of a raw material importing country. Instead of the usual static definition of the trade balance as the difference between the value of exports and imports in a single period, here an intertemporal approach is used with a country's current account balance determined as the difference between aggregate saving and aggregate net investment, variables which are primarily dependent on expectations about the future. The analysis is based on microeconomic optimization models which enables individual causal relationships to be presented in a detailed way, the 'optimal' size of external debt to be determined and the desirability of an immediate adjustment in the level of debt following an external disturbance to be shown from a welfare point of view.

Seller Inventory # 9783540505044

Bibliographic Details

• Title: Factors Determining External Debt : An Intertemporal Study
• Publisher: Springer, Springer Berlin Heidelberg
• Publication Date: 1988
• Language: English
• ISBN 10: 3540505040
• ISBN 13: 9783540505044
• Binding: Taschenbuch
• Condition: Neu
• Dimensions: 244W x 170H x 15D millimeters 244 millimeters width by 170 millimeters height by 15 millimeters depth
• Weight: 475 grams

About this title

Synopsis

Against the background of the international debt problem which originated with the oil shocks of the seventies, this book undertakes a theoretical analysis of the factors determining aggregate external debt, using the example of a raw material importing country. Instead of the usual static definition of the trade balance as the difference between the value of exports and imports in a single period, here an intertemporal approach is used with a country's current account balance determined as the difference between aggregate saving and aggregate net investment, variables which are primarily dependent on expectations about the future. The analysis is based on microeconomic optimization models which enables individual causal relationships to be presented in a detailed way, the "optimal" size of external debt to be determined and the desirability of an immediate adjustment in the level of debt following an external disturbance to be shown from a welfare point of view.