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Foreign Currency Deposits and International Liquidity Shortages in Pakistan, Abbas Mirakhor, Iqbal Zaidi

Contributor
Abstract
This paper studies the implications of foreign currency deposits (FCDs) for international liquidity shortages in Pakistan. The analysis focuses on how the large volume of FCDs and the specific institutional characteristics of those deposits have made the Pakistan economy highly vulnerable to exogenous shocks. The analysis shows that FCDs created another channel for government borrowing, and fiscal sustainability in a "closed" system may be very different from sustainability in a more "open" system. There is a need to think of these issues in terms of total balance sheet vulnerability, and we recommend measures that would make domestic-currency-denominated assets attractive to investors
Table Of Contents
""Contents""; ""I. INTRODUCTION""; ""II. FOREIGN CURRENCY DEPOSITS, FISCAL DEFICITS, AND EXTERNAL DEBT""; ""III. FOREIGN CURRENCY DEPOSITS AND THE CONSTRAINTS ON FINANCIAL POLICIES""; ""IV. FCDS AND THE USE OF NATIONAL SAVINGS FOR DOMESTIC INVESTMENT""; ""V. CONCLUSIONS""; ""APPENDIX I CABALLERO- KRISHNAMURTHY MODEL""; ""REFERENCES""
Language
eng
Literary Form
non fiction
Note
Description based upon print version of record
Physical Description
1 online resource (39 p.)
Specific Material Designation
remote
Form Of Item
online
Isbn
9786613796325

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