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If you actually raise local tax it would help you can just convert the money raised with local tax into the currency in which the debt is. For example, if UK has some debt in Euros they can raise taxes in pounds and just exchange them at an exchange rate for euros and pay down their euro denominated debt. However, it would not be possible to pay the foreign ...


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Indeed, their theory relates primarily household debt to net exports. This is the main focus of their working paper. However, as a referee, I would try to find out more and ask whether the change in net exports comes from imports or exports, or whether household indebtedness could also affect international transfers. A household may use debt to invest abroad ...


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