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Lack of commitment reduces the ability of a country to access international capital markets. Discuss this statement using a simple intertemporal model (2-period model). Examine

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"Lack of commitment reduces the ability of a country to access international capital markets." Discuss this statement using a simple intertemporal model (2-period model). Examine first the case when there are no costs of default. Afterwards, examine the case when there are costs of default. Suppose that output in period 1 is smaller than output in period 2

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