Suppose all foreign debts of Argentina are fixed at a nominal interest rate and loans repayments are

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Suppose all foreign debts of Argentina are fixed at a nominal interest rate and loans repayments are in Peso. What affect would increased domestic inflation have on the real burden of debt payment in Argentina? Does the real burden change if the repayments to the external loans were in US dollars instead of Peso?

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International Finance: Theory And Policy

ISBN: 9781292065199

10th Edition

Authors: Krugman, Paul R.; Melitz, Marc J.; Obstfeld, Maurice

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