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Current Account Reversals and Currency Crisis : Empirical Regularities

Milesi-Ferretti, Gian-Maria - 1998

This paper studies large reductions in current account deficits and exchange rate depreciations in low- and middle-income countries. It examines which factors help predict the occurrence of a reversal or a currency crisis, and how these events affect macroeconomic performance. Both domestic...

Persistent link: https://www.econbiz.de/10014401718

The Interest Rate-Exchange Rate Nexus in the Asian Crisis Countries

Ghosh, Atish R. - 2000

Sharp exchange rate depreciations in the East Asian crisis countries (Indonesia, Korea, and Thailand) raised doubts about the efficacy of increasing interest rates to defend the currency. Using a standard monetary model of exchange rate determination, this paper shows that tighter monetary...

Persistent link: https://www.econbiz.de/10014399883

Financial crisis, US unconventional monetary policy and international spillovers

Chen, Qianying; Filardo, Andrew J.; He, Dong; Zhu, Feng - 2015

Persistent link: https://www.econbiz.de/10011281170

Determinants of bank credit in emerging market economies

Guo, Kai; Stepanyan, Vahram - 2011

Persistent link: https://www.econbiz.de/10009486190

Financial Integration, Growth, and Volatility

Epaulard, Anne - 2005

The aim of this paper is to evaluate the welfare gains from financial integration for developing and emerging market economies. To do so, we build a stochastic endogenous growth model for a small open economy that can (i) borrow from the rest of the world, (ii) invest in foreign assets, and...

Persistent link: https://www.econbiz.de/10014399779

Financial Development, Financial Fragility, and Growth

Loayza, Norman - 2005

This paper studies the apparent contradictions between two strands of the literature on the effects of financial intermediation on economic activity. On the one hand, the empirical growth literature finds a positive effect of financial depth as measured by, for instance, private domestic credit...

Persistent link: https://www.econbiz.de/10014404211

What do deviations from covered interest parity and higher FX hedging costs mean for Asia?

Hong, Gee Hee; Oeking, Anne; Kang, Kenneth H.; Rhee, … - 2019

Asian countries have high demand for U.S. dollars and are sensitive to U.S. dollar funding costs. An important, but often overlooked, component of these costs is the basis spread in the cross-currency swap market that emerges when there are deviations from covered interest parity (CIP). CIP...

Persistent link: https://www.econbiz.de/10012102189

The non-U.S. bank demand for U.S. dollar assets

Adrian, Tobias; Xie, Peichu - 2020

The USD asset share of non-U.S. banks captures the demand for dollars by these investors. An instrumental variable strategy identifies a causal link from the USD asset share to the USD exchange rate. Cross-sectional asset pricing tests show that the USD asset share is a highly significant...

Persistent link: https://www.econbiz.de/10012252026

U.S. dollar currency premium in corporate bonds

Caramichael, John; Gopinath, Gita; Liao, Gordon Y. - 2021

We isolate a U.S. dollar currency premium by comparing corporate bonds issued in the dollar and the euro by firms o … without a currency hedge and about the same with a currency hedge when compared to the euro. This observed parity in currency … mix of their debt issuance depending on the relative borrowing cost between dollar and euro debt. In sum, the …

Persistent link: https://www.econbiz.de/10012605639

U.S. Dollar Risk Premiums and Capital Flows

Balakrishnan, Ravi - 2006

This paper sheds light on the attractiveness of U.S. assets by studying dollar risk premiums, calculated using Consensus exchange rate forecasts, and linking them to bilateral capital flows. The paper finds that the presence of negative dollar risk premiums (i.e. expectations of a dollar...

Persistent link: https://www.econbiz.de/10014402980