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Most smaller countries with their own currency can not do (ii), because they can only get dollar or euro denominated debt from international markets/institution
by jan_g 15y ago
Most smaller countries with their own currency can not do (ii), because they can only get dollar or euro denominated debt from international markets/institutions.
- hugh3 15y agoWhat's "smaller" in this case? I thought that most countries didn't need to borrow money internationally, they just sell bonds primarily to their own citizens.
- justincormack 15y agoDepends on whether they are running a current account deficit too, in which case there will be net borrowing from abroad. Many countries borrow quite substantially abroad.
- eru 15y agoThey are lots of countries with debt dominated in foreign currency. Especially developing ones.