The Determinants of Original Sin

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2012
Arınsoy Memiş, Deniz
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Original sin in economy literature is defined as the inability of countries to borrow in domestic currency from abroad (even from local markets with long maturities and fixed-rate). There are two dimensions of the problem, international and domestic. In this thesis, some of theories on determinants of international original sin phenomenon are investigated. The results suggest that absolute size of the economy is a significant determinant of the international original sin. Financial and economic development is also found to be necessary in order to redeem from the original sin problem. Existence of strong policies and institutions, monetary credibility, and flexible exchange rate regime are found as other significant factors in terms of explaining the phenomenon. Countries that faces credit market imperfections and poor contract enforcement more prone to original sin problem.
International finance., Capital movements., International economic relations., Financial institutions, International., Banks and banking, International.
http://etd.lib.metu.edu.tr/upload/12615079/index.pdf
https://hdl.handle.net/11511/21886
Graduate School of Social Sciences, Thesis

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Citation Formats
D. Arınsoy Memiş, “The Determinants of Original Sin,” M.S. - Master of Science, Middle East Technical University, 2012.
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