@techreport{NBERw12552,
 title = "Local Currency Bond Markets",
 author = "John D. Burger and Francis E. Warnock",
 institution = "National Bureau of Economic Research",
 type = "Working Paper",
 series = "Working Paper Series",
 number = "12552",
 year = "2006",
 month = "October",
 URL = "http://www.nber.org/papers/w12552",
 abstract = {We analyze the development of 49 local bond markets.  Our main finding is that policies and laws matter: Countries with stable inflation rates and strong creditor rights have more developed local bond markets and rely less on foreign-currency-denominated bonds.  The results suggest that "original sin" is a misnomer.  Emerging economies are not inherently dependent upon foreign-currency debt.  Rather, by improving policy performance and strengthening institutions they may develop local currency bond markets, reduce their currency mismatch, and lessen the likelihood of future crises.},
}