This paper evaluates how the global financial crisis emanating from theU.S. was transmitted to emerging markets. Our focus is on the extent thatthe crisis caused external market pressures (EMP), and whether theabsorption of the shock was mainly through exchange rate depreciation orthe loss of...

We estimate the pricing of sovereign risk for sixty countries based on fiscal space (debt/tax;deficits/tax) and other economic fundamentals over 2005-10. We measure how accurately themodel predicts sovereign credit default swap (CDS) spreads, focusing in particular on the fivecountries in the...

Japanese official intervention in the foreign exchange market is of by far the largest magnitude in the world, despite little or no evidence that it is effective in moving exchange rates. Up until recently, however, official data on intervention has not been available for Japan. This paper...

Are countries with unregulated capital flows more vulnerable to currency crises? Efforts to answer this question properly must control for “self selection†bias since countries with liberalized capital accounts may also have more sound economic policies and institutions that make them...

We examine the inflation targeting (IT) experiences of emerging market economies, focusing especially on the roles of the real exchange rate and the distinction between commodity and non-commodity exporting nations. In the context of a simple empirical model, estimated with panel data for 17...

Are countries with unregulated capital flows more vulnerable to currency crises? Efforts to answer this question properly must control for “self selection†bias since countries with liberalized capital accounts may also have more sound economic policies and institutions that make them...

Japanese official intervention in the foreign exchange market is of by far the largest magnitude in the world, despite little or no evidence that it is effective in moving exchange rates. Up until recently, however, official data on intervention has not been available for Japan. This paper...

Studies of central bank intervention are complicated by the fact that we typically observe intervention only during periods of turbulent exchange markets. Furthermore, entering the market during these particular periods is a conscious “self-selection†choice made by the intervening...

Sudden Stops are the simultaneous occurrence of a currency/balance of payments crisis with a reversal in capital flows (Calvo, 1998). We investigate the output effects of financial crises in emerging markets, focusing on whether sudden-stop crises are a unique phenomenon and whether they entail...

Sudden Stops are the simultaneous occurrence of a currency/balance of payments crisis with a reversal in capital flows (Calvo, 1998). We investigate the output effects of financial crises in emerging markets, focusing on whether sudden-stop crises are a unique phenomenon and whether they entail...