Abstract
This paper empirically explores the drivers behind the cross-country heterogeneity in inflation-linked (IL) debt for advanced and emerging economies between 1995 and 2017. It finds that countries with more flexible exchange rate regimes and higher tax rates issue more of their public debt linked to inflation. There is some evidence that high inflation countries issue more IL debt, but no indication that country size, financial development, or institutional quality is significantly associated with the IL debt share. For IL debt over gross domestic product, however, institutional quality matters, but the exchange rate regime and inflation do not.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
