{"id":9065,"date":"2025-12-15T16:58:26","date_gmt":"2025-12-15T19:58:26","guid":{"rendered":"https:\/\/aaep.org.ar\/?p=9065"},"modified":"2025-12-15T16:58:28","modified_gmt":"2025-12-15T19:58:28","slug":"the-elusive-balance-sheet-effect-corporate-investment-and-currency-depreciations","status":"publish","type":"post","link":"https:\/\/aaep.org.ar\/?p=9065","title":{"rendered":"The Elusive Balance Sheet Effect: Corporate Investment and Currency Depreciations"},"content":{"rendered":"<iframe loading=\"lazy\" class=\"wonderplugin-pdf-iframe\" src=\"https:\/\/aaep.org.ar\/wp-content\/plugins\/wonderplugin-pdf-embed\/pdfjslight\/web\/viewer.html?v=2&file=https:\/\/aaep.org.ar\/works\/works2025\/17.pdf\" width=\"100%\" height=\"600px\" style=\"border:0;\"><\/iframe>\n\n\n\n<p><\/p>\n\n\n\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Do exchange rate depreciations curtail investment when firms owe in foreign currency? Using a novel dataset on 7,136 firms from 27 emerging markets (2001\u20132022), we merge detailed debt composition with balance sheet data to revisit this question. Contrary to conventional wisdom, we find little evidence that foreign-denominated debt systematically depresses capital expenditures. The exception arises in episodes of sharp depreciations, when investment does contract for exposed firms. Our results suggest that foreign debt is not inherently problematic, but it becomes a source of vulnerability under extreme currency shocks.<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_coblocks_attr":"","_coblocks_dimensions":"","_coblocks_responsive_height":"","_coblocks_accordion_ie_support":"","footnotes":""},"categories":[29],"tags":[33],"class_list":["post-9065","post","type-post","status-publish","format-standard","hentry","category-anales","tag-aaep-anales-2025"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.5 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>The Elusive Balance Sheet Effect: Corporate Investment and Currency Depreciations - Asociaci\u00f3n Argentina de Econom\u00eda Pol\u00edtica<\/title>\n<meta name=\"robots\" content=\"noindex, follow\" \/>\n<meta property=\"og:locale\" content=\"es_ES\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"The Elusive Balance Sheet Effect: Corporate Investment and Currency Depreciations - Asociaci\u00f3n Argentina de Econom\u00eda Pol\u00edtica\" \/>\n<meta property=\"og:description\" content=\"Do exchange rate depreciations curtail investment when firms owe in foreign currency? Using a novel dataset on 7,136 firms from 27 emerging markets (2001\u20132022), we merge detailed debt composition with balance sheet data to revisit this question. Contrary to conventional wisdom, we find little evidence that foreign-denominated debt systematically depresses capital expenditures. The exception arises in episodes of sharp depreciations, when investment does contract for exposed firms. Our results suggest that foreign debt is not inherently problematic, but it becomes a source of vulnerability under extreme currency shocks.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/aaep.org.ar\/?p=9065\" \/>\n<meta property=\"og:site_name\" content=\"Asociaci\u00f3n Argentina de Econom\u00eda Pol\u00edtica\" \/>\n<meta property=\"article:published_time\" content=\"2025-12-15T19:58:26+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2025-12-15T19:58:28+00:00\" \/>\n<meta name=\"author\" content=\"aaepolitica\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@aaepoficial\" \/>\n<meta name=\"twitter:site\" content=\"@aaepoficial\" \/>\n<meta name=\"twitter:label1\" content=\"Escrito por\" \/>\n\t<meta name=\"twitter:data1\" content=\"aaepolitica\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/aaep.org.ar\\\/?p=9065#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/aaep.org.ar\\\/?p=9065\"},\"author\":{\"name\":\"aaepolitica\",\"@id\":\"https:\\\/\\\/aaep.org.ar\\\/#\\\/schema\\\/person\\\/7150b747ba20875259c74b2cd177316c\"},\"headline\":\"The Elusive Balance Sheet Effect: Corporate Investment and Currency Depreciations\",\"datePublished\":\"2025-12-15T19:58:26+00:00\",\"dateModified\":\"2025-12-15T19:58:28+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/aaep.org.ar\\\/?p=9065\"},\"wordCount\":25,\"publisher\":{\"@id\":\"https:\\\/\\\/aaep.org.ar\\\/#organization\"},\"keywords\":[\"AAEP Anales 2025\"],\"articleSection\":[\"Anales\"],\"inLanguage\":\"es\"},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/aaep.org.ar\\\/?p=9065\",\"url\":\"https:\\\/\\\/aaep.org.ar\\\/?p=9065\",\"name\":\"The Elusive Balance Sheet Effect: Corporate Investment and Currency Depreciations - 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