July 2007. Spillovers from advanced financial markets to currencies in emerging countries stem from the same causes … by the exchange rate volatility, and investigate their relationship to a global financial stress indicator, measured by … the volatility on global markets. We introduce the possibility of non-linearities by running smooth transition regressions …

The aim of this article is to answer the following question: can the considerable rise in the volatility of the LAC … market volatility, especially in Mexico. …