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Inflation Targeting and Sudden Stops
Caballero, Ricardo J. - 2003
Emerging economies experience sudden stops in capital inflows. As we have argued in Caballero and Krishnamurthy (2002), having access to monetary policy during these sudden stops is useful, but mostly for insurance' rather than for aggregate demand reasons. In this environment, a central bank...
Persistent link: https://www.econbiz.de/10012469099
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A "Vertical" Analysis of Crises and Intervention : Fear of Floating and Ex-ante Problems
Caballero, Ricardo - 2001
Emerging economies are prone to crises triggered by external shocks. During these crises, should the central bank stabilize the currency or domestic interest rates? If the choice is outside the central bank's control, as in a currency board, are there good policy substitutes? We argue that these...
Persistent link: https://www.econbiz.de/10012470291
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Foreign Safe Asset Demand and the Dollar Exchange Rate
Jiang, Zhengyang - 2018
We develop a theory that links foreign investors' demand for the safety of U.S. Treasury bonds to the value of the … owning Treasury bonds. Under our theory, we show that the foreign convenience yield can be measured by the 'Treasury basis …. In both datasets, regression evidence strongly supports the theory. Our results help to resolve the exchange rate …
Persistent link: https://www.econbiz.de/10012453275
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What Makes US Government Bonds Safe Assets?
He, Zhiguo - 2016
US government bonds are widely considered to be the world's safe store of value. US government bonds are a large fraction of safe asset portfolios, such as the porfolios of many central banks. The world demand for safe assets leads to low yields on US Treasury bonds. During periods of economic...
Persistent link: https://www.econbiz.de/10012456656