Devaluación, deuda extranjera y el proceso de ajuste

Abstract

The object of this paper is to include foreign debt into the analysis of devaluation. In particular it is shown that the existence of foreign debt may reduce the level of real income after devaluation -against the expectation from the traditional theory that only takes into account the commercial balance-. This explanation of the depression after the devaluation is alternative to those of income distribution and restrictive monetary policy.