Optimal Foreign Debt Accumulation with Export Revenue Uncertainty

1976 ◽  
Vol 17 (3) ◽  
pp. 675 ◽  
Author(s):  
James L. McCabe ◽  
David S. Sibley
Keyword(s):  
Foreign Debt ◽  
Debt Accumulation ◽  
Export Revenue

scholarly journals UTANG LUAR NEGERI (ULN) PEMERINTAH RI: BERMANFAAT ATAU MENYENGSARAKAN?

2017 ◽  
Vol 4 (1) ◽  
pp. 47
Author(s):  
Didiet Purnomo
Keyword(s):  
Economic Condition ◽  
Foreign Debt ◽  
Debt Service ◽  
The Other ◽  
Foreign Loan ◽  
Indonesian Government ◽  
Debt Accumulation ◽  
Other Hand ◽  
The Government ◽  
The Impact

This article tries to explain the impact of Indonesian government foreign debt on its economic condition. The debt, on one hand, especially one through the government course is badly hoped to return Indonesian economic condition to be better after crisis. On the other hand, however the government foreign debt accumulation becomes the boomerang for Indonesian government. How far is actually the permissiveness of the foreign loan can be clarified via some approaches i.e. budget principle, net transfer. and Debt Service Ratio (DSR) approaches. The visible phenomenon based on the above approaches illustrates that Indonesian government foreign debt condition is hugely accumulated, so it is regarded to exceed the repayment power.

Capital Flows to Developing Countries: Blessing or Curse? (Distinguished Lecture)

1998 ◽  
Vol 37 (4I) ◽  
pp. 125-151 ◽  
Author(s):  
Mohsin S. Khan
Keyword(s):  
Developing Countries ◽  
Capital Flows ◽  
Financial Integration ◽  
Foreign Capital ◽  
Foreign Debt ◽  
Capital Inflows ◽  
Private Capital ◽  
Policy Responses ◽  
Private Capital Flows ◽  
Significant Phenomenon

The surge of private capital flows to developing countries that occurred in the 1990s has been the most significant phenomenon of the decade for these countries. By the middle of the decade many developing countries in Asia and Latin America were awash with private foreign capital. In contrast to earlier periods when the scarcity of foreign capital dominated economic policy-making in these countries, the issue now for governments was how to manage the largescale capital inflows to generate higher rates ofinvestrnent and growth. While a number of developing countries were able to benefit substantially from the private foreign financing that globalisation made available to them, it also became apparent that capital inflows were not a complete blessing and could even turn out to be a curse. Indeed, in some countries capital inflows led to rapid monetary expansion, inflationary pressures, real exchange rate appreciation, fmancial sector difficulties, widening current account deficits, and a rapid build-up of foreign debt. In addition, as the experience of Mexico in 1994 and the Asian crisis of 1997-98 demonstrated, financial integration and globalisation can cut both ways. Private capital flows are volatile and eventually there can be a large reversal of capital because of changes in expected asset returns, investor herding behaviour, and contagion effects. Such reversals can lead to recessions and serious problems for financial systems. This paper examines the characteristics, causes and consequences of capital flows to developing countries in the 1990s. It also highlights the appropriate policy responses for governments facing such inflows, specifically to prevent overheating of the economy, and to limit the vulnerability to reversals of capital flows.

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