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Assume a country, Pois, has all its debt in foreign currency (dollars) and the local currency is called the peso. a) Write down the debt
Assume a country, Pois, has all its debt in foreign currency (dollars) and the local currency is called the peso. a) Write down the debt to GDP ratio in peso terms (Hint: this should involve three variables) b) Knowing that %(ab)=%(a)+%(b) and %(c/d)=%(c)-%(d) , rewrite the change in debt to GDP ratio in percent change terms of the three components. c) If the peso depreciates by 10% and this increases (nominal) GDP in Poyais by 5%, what happens to the
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