Debt Buildup and Currency Vulnerability: Evidence from Global Markets

The study analyzes a panel dataset of 59 advanced and emerging markets. It finds that both private and public debt exacerbate currency vulnerability, though the evidence of a significant effect on currency depreciation pressure is more robust and consistent for private debt. The authors also find that excessive private debt buildup can be particularly harmful in emerging markets.

  • The Debt Buildup in Emerging Markets in the Aftermath of the Global Financial Crisis
  • Debt, Recession, and Financial Stability: A Literature Review
  • Empirical Methodology and Data
  • Debt Buildup and Currency Vulnerability: The Empirical Evidence
  • Conclusion and Policy Implications
 

 
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Source URL: https://www.adb.org/publications/debt-buildup-currency-vulnerability