But such a strategy can work only in countries where the duration of the government s debt is long and the interest rate on that debt is fixed.

Europe's fixed exchange rate mechanism collapsed in 1992.

The first is below market fixed rate bonds.

People with fixed rate mortgages are also vulnerable to rate increases, though less directly.

But an exception can again be made When both the private and public sectors are overburdened with debt, adjustment leads to a debt deflation spiral, particularly when conducted under a fixed exchange rate regime.

With fixed supply, rents on these properties should increase at a rate equal to or above the rate of GDP growth.

The country was no longer subject to imported deflation via the fixed exchange rate.

As a result, the interest rate for 12 month fixed deposits has reached 3.9 .

After all, a fixed exchange rate or common currency requires limits on fiscal independence.

H. Decision XVII __ Fixed exchange rate mechanism for the replenishment of the Multilateral Fund

The daily subsistence allowance rate is fixed on a monthly basis by the United Nations.

By contrast, China had a fixed investment rate of 41.7 of GDP and a savings rate of 51.9 , reflected in a large surplus.

What would help is if their nominal disposable income rose relative to their (fixed) debt service.

H. Draft decision XVII H Fixed exchange rate mechanism for the replenishment of the Multilateral Fund

Therefore, to expect a fixed employment rate over the past 15 years might well be naive.

In a low interest rate environment, however, equities tended to perform better than fixed income securities.

Interest rate spreads on Italian sovereign debt have widened, but not sharply.

Annual spending on fixed expenses, such as debt service and pensions, is not subject to public participation.

After all, if a country s debt GDP ratio is to decline without austerity, the interest rate that it pays on its debt must be lower than its GDP growth rate.

Level of PCGNI not in line with economic reality, for example, due to fixed unrealistic exchange rate

This time, the unemployment rate and household and government debt are much higher.

The country is creating new debt at a rate of 400 million annually.

The average high debt episodes since 1800 last 23 years and are associated with a growth rate more than one percentage point below the rate typical for periods of lower debt levels.

Greece is caught in a classic debt trap, as the interest rate on its public debt has soared beyond its growth rate by a considerable margin Spain is teetering on the brink.

Exchange rate volatility compounds the debt problem through its effect on interest rates, foreign exchange earnings and reserves, and debt servicing.

In reality, of course, a single currency or fixed exchange rate is not needed for trade to flourish.

To direct the Treasurer to extend the fixed exchange rate mechanism for a further trial period of three years

A direct effect of the higher interest rate would be to increase the budget deficit and the rate of growth of government debt.

Deflation increases the real (inflation adjusted) debt burden, as well as the real interest rate.

Portugal has a 93 debt to GDP ratio and already has very high unemployment rate.

In Europe, the market for Greek debt has frozen, and interest rate spreads between Irish and German euro denominated debt recently reached alarming levels.

It is a lot easier to exit from a fixed exchange rate regime when the pressures on the currency are upwards.

Real exchange rate adjustments inside a monetary union, or among countries with fixed exchange rates, can take place through inflation differentials.

Between 2008 and June of this year, the Chinese held the renminbi at a fixed rate of 6.8 to the dollar.

Secondly, the international community should also establish a standard to set a fixed percentage of export revenue for the repayment of debt.

Fixed

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Like Argentina, Greece has a fixed exchange rate, a long history of fiscal deficits, and an even longer history of sovereign defaults.

The CFA franc s fixed exchange rate is pegged to the euro and overvalued in order to shield French companies from euro depreciation.

a On the basis of the United States dollar euro exchange rate of 0.757 fixed by the United Nations for March 2005.

On the one hand, pegging local currencies to the dollar renders monetary policy completely ineffective, as in a fixed exchange rate regime.

The rate of gross fixed investment in the major economies picked up notably in 2004 and will continue to increase in 2005.