Abstract
So far, the analysis of the factors determining aggregate external debt has used the example of a small open country which could borrow as much as it wanted from the rest of the world in a perfect world capital market. This country could not influence real world interest rates, the price of the traded goods it produced, or the price of the raw material it imported; from its point of view all these were given in both periods. The effects of a raw material price rise on the rest of the world and the resultant reper-cussions on the country being studied were, however, not considered.
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© 1988 Springer-Verlag Berlin Heidelberg
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Rübel, G. (1988). External Debt in General Equilibrium Models. In: Factors Determining External Debt. Studies in Contemporary Economics. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-83655-8_5
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DOI: https://doi.org/10.1007/978-3-642-83655-8_5
Publisher Name: Springer, Berlin, Heidelberg
Print ISBN: 978-3-540-50504-4
Online ISBN: 978-3-642-83655-8
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