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Lahiri, A., & Végh, C. (2003). Delaying the Inevitable: Optimal Interest Rate Policy and BOP Crises. Journal of Political Economy, 111, 404-424.
https://doi.org/10.1086/367682

has been cited by the following article:

• TITLE: Effects of the Oil Shocks, Interest Rate, and Current Account Balance on the Sovereign Debt of CEMAC Member Countries

  AUTHORS: Michel Okiemy, Koumou Guénolé Mbongo

  KEYWORDS: Asymmetries, Sovereign Debt, Oil Shocks, Interest Rate, Balance of Payment, NARDL

  JOURNAL NAME: Modern Economy, Vol.12 No.1, January 29, 2021

  ABSTRACT: The objective of this paper is to analyze the effects of oil shocks, interest rates and balance of payment on the sovereign debt of member countries of the Central African Economic and Monetary Community (CEMAC) from 1998 to 2018 using the nonlinear autoregressive distributed lag (NARDL) method. The obtained results demonstrate short- and long-term asymmetric relationships among oil shocks, interest rate, and balances of payment on the sovereign debts of these countries. A positive long-term shock increases sovereign debt, while debt services deteriorate during negative short-term shocks, which demonstrates the procyclical behavior of the debt of these countries. These results enable us to formulate implications for economic policies to improve budget management and diversify the economy.