Foreign debt and financial fragility in the perspective of the emerging countries

Authors

  • Mario Tonveronachi

DOI:

https://doi.org/10.13133/2037-3643/9862

Keywords:

Debt, Foreign Debt

Abstract

Following the financial fragility approach of H. Minsky and its later extension by J. Kregel, the paper addresses some basic aspects of the dynamics and management of foreign debt in the perspective of the emerging countries. Minsky's definitions of hedge, speculative and Ponzi positions are restated in order to define a country's external fragility. How international asymmetries in the external financial fragility may influence global fragility is then discussed, leading to analyse the limits of financial openness. Finally, the distinction between domestic and external financial fragility permits to look at how the dynamic interplay among the economic units, including the government and its policies, may influence both the distribution and the level of the two types of fragilities.



JEL Codes: F21, F32, F34

References

EICHENGREEN, B. (1991), "Historical research on international lending and debt", journal of Economic Perspectives, vol. V, no. 2, pp. 149-69.

KREGEL, J. (1997), "Margins of safety and weight of the argument in generating financial fragility", journal of Economic Issues, vol. XXXI, no. 2, pp. 543-48.

KREGEL, J. (2004), "Can we create a stable international financial environment that ensures net resources transfers to developing countries?", journal of Post Keynesian Economics, vol. 26, no. 4, pp. 573-90.

MINSKY, H. (1986), Stabilizing an Unstable Economy, Yale University Press, Yale.

REINHART, C. and K. ROGOFF (2004), "Serial default and the 'paradox' of rich-to-poor capital flows", American Economic Association, Papers and Proceedings, vol. 94, no. 2, pp. 53-58.

ROGOFF, K (2003), "The IMF strikes back", Foreign Policy, January/February.

TONVERONACHI M. (2006), "The role of foreign banks in emerging countries. The case of Argentina, 1993-2000", Investigacion Economica, enero-marzo, pp. 15-60.

Downloads

Published

2012-04-19

How to Cite

Tonveronachi, M. (2012). Foreign debt and financial fragility in the perspective of the emerging countries. PSL Quarterly Review, 59(236). https://doi.org/10.13133/2037-3643/9862

Issue

Vol. 59 No. 236 (2006)

Section

Articles

License

 
 
Licenza Creative Commons
 
All material in this website and every article published by the Review are licensed under a Creative Commons Attribution - Non commercial - No derivates 4.0 International license.
The authors who publish on this journal maintain all rights on their works without any restrictions.

Most read articles by the same author(s)

1 2 > >>