Dear Editor,
It is counter-intuitive to be accelerating the decline in the domestic debt stock and at the same time devaluation is increasing the value of the external debt, thus lowering the rate of decline in the national (total) debt.
This is regressive fiscal and monetary policy.
You can see from the chart that the value of the external debt stock is moving with the exchange rate and counteracting efforts under the debt exchange programme to reduce the value of the domestic debt stock.
Silbert Barrett
net_sbarrett@hotmail.com
It is counter-intuitive to be accelerating the decline in the domestic debt stock and at the same time devaluation is increasing the value of the external debt, thus lowering the rate of decline in the national (total) debt.
This is regressive fiscal and monetary policy.
You can see from the chart that the value of the external debt stock is moving with the exchange rate and counteracting efforts under the debt exchange programme to reduce the value of the domestic debt stock.
Silbert Barrett
net_sbarrett@hotmail.com