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Dollar Illiquidity and Central Bank Swap Arrangements During the Global Financial Crisis

Rose, Andrew K; Spiegel, Mark - C.E.P.R. Discussion Papers - 2011

While the global financial crisis was centered in the United States, it led to a surprising appreciation in the dollar, suggesting global dollar illiquidity. In response, the Federal Reserve partnered with other central banks to inject dollars into the international financial system. Empirical...

Persistent link: https://www.econbiz.de/10009293988

Global Imbalances and the Financial Crisis: Products of Common Causes

Obstfeld, Maurice; Rogoff, Kenneth - C.E.P.R. Discussion Papers - 2009

This paper makes a case that the global imbalances of the 2000s and the recent global financial crisis are intimately connected. Both have their origins in economic policies followed in a number of countries in the 2000s and in distortions that influenced the transmission of these policies...

Persistent link: https://www.econbiz.de/10008557008

Lenders of Last Resort in a Globalized World

Obstfeld, Maurice - C.E.P.R. Discussion Papers - 2009

The recent financial crisis teaches important lessons regarding the lender-of-last resort function. Large swap lines extended in 2007-08 from the Federal Reserve to other central banks show that the classic concept of a national last-resort lender fails to address key vulnerabilities in a...

Persistent link: https://www.econbiz.de/10004969129

Financial Fragility with Rational and Irrational Exuberance

Lagunoff, Roger; Schreft, Stacey L. - EconWPA - 1999

failures. Investors forecast the likelihood of loss from contagion and may shift preemptively to safer portfolios, breaking …

Persistent link: https://www.econbiz.de/10005412742

Global crises and equity market contagion

Bekaert, Geert; Ehrmann, Michael; Fratzscher, Marcel; … - C.E.P.R. Discussion Papers - 2011

unexplained increases in factor loadings as indicative of contagion. We find evidence of systematic contagion from US markets and … contagion from domestic equity markets to individual domestic equity portfolios, with its severity inversely related to the …

Persistent link: https://www.econbiz.de/10009148883

Some Contagion, Some Interdependence: More Pitfalls in Tests of Financial Contagion

Corsetti, Giancarlo; Pericoli, Marcello; Sbracia, Massimo - C.E.P.R. Discussion Papers - 2002

This Paper develops a test of contagion in financial markets based on bivariate correlation analysis, which generalizes … existing tests, and applies it to the international effects of the Hong Kong stock market crisis of October 1997. Contagion is … country-specific shocks in Hong Kong, our test finds evidence of contagion for 5 countries out of a sample of 17. This is in …

Persistent link: https://www.econbiz.de/10005791976

Credit, Financial Stability, and the Macroeconomy

Taylor, Alan M. - C.E.P.R. Discussion Papers - 2015

Since the 2008 global financial crisis, and after decades of relative neglect, the importance of the financial system and its episodic crises as drivers of macroeconomic outcomes has attracted fresh scrutiny from academics, policy makers, and practitioners. Theoretical advances are following a...

Persistent link: https://www.econbiz.de/10011213304

CONTAGION AND PORTFOLIO SHIFT IN EMERGING COUNTRIES´ SOVEREIGN BONDS

Herrero, Alicia Garcia; Rios, Antonio Diez de los - EconWPA - 2004

The paper tests whether there were events of contagion, and portfolio shift, in the sovereign bond markets of eleven … emerging countries' between January 1995 and November 2001. From existing definitions, we narrow down the concept of contagion … pricing model. We measure contagion (and portfolio shift) in terms of a causal positive (negative) dynamic co-movement between …

Persistent link: https://www.econbiz.de/10005125554

Currency Crisis, Monetary Policy and Corporate Balance Sheet Vulnerabilities

Eijffinger, Sylvester; Goderis, Benedikt - Tilburg University, Center for Economic Research - 2005

This paper studies how the exposure of a country's corporate sector to interest rate and exchange rate changes affects the probability of a currency crisis.To analyze this question, we present a model that defines currency crisis as situations in which the costs of maintaining a fixed exchange...

Persistent link: https://www.econbiz.de/10011090665

The vulnerability of sub-Saharan Africa to the financial crisis: the case of trade

Berman, Nicolas; Martin, Philippe - C.E.P.R. Discussion Papers - 2010

In the early stage of the 2008-2009 financial crisis, the conventional wisdom was that financial under-development of sub Saharan African economies may be a blessing in disguise because it insulates them from the direct effects of the crisis. This paper argues that this may also make African...

Persistent link: https://www.econbiz.de/10008530377