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Asymmetric Information in the Stock Market: Economic News and Co-movement

Albuquerque, Rui; Vega, Clara - C.E.P.R. Discussion Papers - 2006

We analyze the effect that real-time domestic and foreign news about fundamentals have on the correlation of stock returns of a small open economy, Portugal, and a large open economy, the U.S. We also study the role of public and private information in the price formation process in the U.S. and...

Persistent link: https://www.econbiz.de/10005666949

How Will the Euro behave?

Cohen, Daniel - C.E.P.R. Discussion Papers - 1997

This paper investigates theoretically and empirically the effect on exchange rates of integrating monetary policy in Europe. It shows that the likely effect will be to generate a tighter European monetary policy (notwithstanding credibility aspects which are not discussed). The argument is that...

Persistent link: https://www.econbiz.de/10005666974

Shocking Aspects of European Monetary Unification

Bayoumi, Tamim; Eichengreen, Barry - C.E.P.R. Discussion Papers - 1992

Data on output and prices for eleven EC member nations are analysed using a VAR decomposition to extract information on underlying aggregate supply and demand disturbances. The coherence of the underlying shocks across countries and the speed of adjustment to these shocks are compared with the...

Persistent link: https://www.econbiz.de/10005667032

Optimal external debt and default

Guimarães, Bernardo - C.E.P.R. Discussion Papers - 2007

debt contract. In this environment, debt relief generated by reasonable fluctuations in productivity is an order of …

Persistent link: https://www.econbiz.de/10005667062

US Imbalances: The Role of Technology and Policy

Bems, Rudolfs; Dedola, Luca; Smets, Frank - C.E.P.R. Discussion Papers - 2007

This paper investigates the role of three likely factors in driving the steady deterioration of the US external balance: US technology developments, changes in the US government fiscal position and the Fed’s monetary policy. Estimating several Vector Autoregressions on US data over the period...

Persistent link: https://www.econbiz.de/10005789011

Domestic Institutions and the Bypass Effect of Financial Globalization

Ju, Jiandong; Wei, Shang-Jin - C.E.P.R. Discussion Papers - 2007

, corporate governance, and property rights protection - and patterns of international capital flows. It studies conditions under … poor corporate governance in a country may be completely bypassed by two-way capital flows in which domestic savings leave … effect is ambiguous for a developing country with an inefficient financial sector/poor corporate governance. However, the net …

Persistent link: https://www.econbiz.de/10005789081

Random Walk Expectations and the Forward Discount Puzzle

Bacchetta, Philippe; van Wincoop, Eric - C.E.P.R. Discussion Papers - 2007

Two well-known, but seemingly contradictory, features of exchange rates are that they are close to a random walk while at the same time exchange rate changes are predictable by interest rate differentials. In this paper we investigate whether these two features of the data may in fact be...

Persistent link: https://www.econbiz.de/10005789185

From World Banker to World Venture Capitalist: US External Adjustment and The Exorbitant Privilege

Gourinchas, Pierre-Olivier; Rey, Hélène - C.E.P.R. Discussion Papers - 2005

Does the centre country of the International Monetary System enjoy an 'exorbitant privilege' that significantly weakens its external constraint as has been asserted in some European quarters? Using a newly constructed dataset, we perform a detailed analysis of the historical evolution of US...

Persistent link: https://www.econbiz.de/10005791200

Does Idiosyncratic Business Risk Matter?

Michelacci, Claudio; Schivardi, Fabiano - C.E.P.R. Discussion Papers - 2008

Financial market imperfections can prevent entrepreneurs from diversifying away the idiosyncratic risk of their business. As a result idiosyncratic risk discourages entrepreneurial activity and hinders growth, with the effects being stronger in economies with lower risk diversification...

Persistent link: https://www.econbiz.de/10005791288

Currency Crises, Sunspots and Markov-Switching Regimes

Jeanne, Olivier; Masson, Paul R - C.E.P.R. Discussion Papers - 1998

This paper investigates the theoretical properties of a class of 'second generation' models of currency crises as well as their applicability to empirical work. We show that under some conditions these models give rise to an arbitrarily large number of equilibria, as well as cyclic or chaotic...

Persistent link: https://www.econbiz.de/10005791938