CELEBRATING Celebrating 50
Public Sector Economics

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Public debt and the dollar



Aaron Mehrotra*
Article   |   Year:  2026   |   Pages:  67 - 94   |   Volume:  50   |   Issue:  1
Received:  August 7, 2025   |   Accepted:   January 10, 2026   |   Published online:  March 18, 2026
Download citation        https://doi.org/10.3326/pse.50.1.4       


Table 1
Baseline model, all economies
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Table 2
Baseline model, advanced economies
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Table 3
Baseline model, emerging market and developing economies
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Table 4
Evidence on the underlying channels
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Table 5
Interaction between credit ratings, exchange rate and public debt
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Table 6
Results with the level of the broad dollar exchange rate
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Table 7
Implications of currency crises
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Table A1
Data sources, units and transformations
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Table A2
List of countries in the sample, by country group
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Table A3
Summary statistics
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Table A4
Relationship between the US dollar and debt over different horizons
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Table A5
Model with real broad dollar exchange rate
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  March, 2026
I/2026

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