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Capital Controls and Recovery from the Financial Crisis of the 1930s

Mitchener, Kris; Wandschneider, Kirsten - C.E.P.R. Discussion Papers - 2014

We examine the first widespread use of capital controls in response to a global or regional financial crisis. In particular, we analyze whether capital controls mitigated capital flight in the 1930s and assess their causal effects on macroeconomic recovery from the Great Depression. We find...

Persistent link: https://www.econbiz.de/10011084261

The Financial Resource Curse

Benigno, Gianluca; Fornaro, Luca - C.E.P.R. Discussion Papers - 2013

This paper presents a model of financial resource curse, i.e. episodes of abundant access to foreign capital coupled with weak productivity growth. We study a two-sector, tradable and non-tradable, small open economy. The tradable sector is the engine of growth, and productivity growth is...

Persistent link: https://www.econbiz.de/10011084525

The Feldstein-Horioka Fact

Giannone, Domenico; Lenza, Michele - C.E.P.R. Discussion Papers - 2004

This Paper shows that general equilibrium effects can partly rationalize the high correlation between saving and investment observed in OECD countries. We introduce a novel factor augmented panel regression to control for general equilibrium effects where global shocks are allowed to affect each...

Persistent link: https://www.econbiz.de/10005666697

EMU, EU, capital market integration and consumption smoothing

Christev, Atanas; Melitz, Jacques - C.E.P.R. Discussion Papers - 2010

This empirical study of the impact of EMU on capital market integration and consumption smoothing comes to three conclusions: first, EMU promotes members’ holdings of foreign assets and foreign liabilities; second, no benefits of consumption smoothing result; third, EU membership, not a single...

Persistent link: https://www.econbiz.de/10008468696

Terms of Trade Shocks in an Intertemporal Model: Should We Worry about the Dutch Disease or Excessive Borrowing?

Kuralbayeva, Karlygash; Vines, David - C.E.P.R. Discussion Papers - 2006

This paper analyzes the impact of terms of trade and risk-premium shocks on a small open economy in an intertemporal, Dutch disease model, with international capital mobility. It is shown that when the economy experiences a permanent improvement in the terms of trade, the Dutch disease effect...

Persistent link: https://www.econbiz.de/10005504657

Current Account Theory and the Dynamics of US Net Foreign Liabilities

Corsetti, Giancarlo; Konstantinou, Panagiotis T - C.E.P.R. Discussion Papers - 2005

This paper provides empirical evidence on the adjustment dynamics of the US net foreign liabilities, net output and consumption. We use empirical techniques that allow us to quantify the relative importance of permanent and transitory innovations. We find that transitory shocks contribute...

Persistent link: https://www.econbiz.de/10005497809

The Valuation Channel of International Adjustment

Ghironi, Fabio; Lee, Jaewoo; Rebucci, Alessandro - C.E.P.R. Discussion Papers - 2015

International financial integration has greatly increased the scope for changes in a country’s net foreign asset position through the “valuation channel” of external adjustment, namely capital gains and losses on the country’s external assets and liabilities. We examine this valuation...

Persistent link: https://www.econbiz.de/10011266533

Large Capital Inflows, Sectoral Allocation and Economic Performance

Benigno, Gianluca; Converse, Nathan; Fornaro, Luca - C.E.P.R. Discussion Papers - 2015

This paper describes the stylized facts characterizing periods of exceptionally large capital inflows in a sample of 70 middle- and high-income countries over the last 35 years. We identify 155 episodes of large capital inflows and find that these events are typically accompanied by an economic...

Persistent link: https://www.econbiz.de/10011266535

International Liquidity and Exchange Rate Dynamics

Gabaix, Xavier; Maggiori, Matteo - C.E.P.R. Discussion Papers - 2014

We provide a theory of the determination of exchange rates based on capital flows in imperfect financial markets … their required compensation for holding currency risk, thus impacting both the level and volatility of exchange rates. Our … theory of exchange rate determination in imperfect financial markets not only rationalizes the empirical disconnect between …

Persistent link: https://www.econbiz.de/10011083240

Effects of Transitory Shocks to Aggregate Output on Consumption in Poor Countries

Brückner, Markus; Gradstein, Mark - C.E.P.R. Discussion Papers - 2013

This paper provides instrumental variables estimates of the response of aggregate private consumption to transitory output shocks in poor countries. To identify exogenous, unanticipated, idiosyncratic and transitory variations in national output we use year-to-year variations in rainfall as an...

Persistent link: https://www.econbiz.de/10011083244