Catão, Luis A.V.; Milesi-Ferretti, Gian Maria - In: Journal of International Economics 94 (2014) 1, pp. 18-32
We examine the determinants of external crises, focusing on the role of foreign liabilities and their composition. Using a variety of statistical tools and comprehensive data spanning 1970–2011, we find that the ratio of net foreign liabilities to GDP is a significant crisis predictor. This is...