Almost 80 percent of capital goods production in the world is concentrated in 10 countries. Poor countries import most … of their capital goods. We argue that international trade in capital goods has quantitatively important effects on … economic development through two channels: (i) capital formation and (ii) aggregate TFP. We embed a multi country, multi sector …

resulting excessive “capital shallowing” could be identified as a weakness of the rapid economic growth of the 1990s that may …

-movement. We first show with a reduced form empirical approach how capital market integration (equity) has a negative effect on … business cycle co-movement while credit market integration (debt) has a positive effect. We then construct a model that can … replicate these empirical results.> ; In the model, capital market integration is modeled as crossborder equity ownership and …

In an economy in which debt obligations are fixed in nominal terms, but there are otherwise no nominal rigidities, a … equilibrium that one would observe if there were perfect capital markets. Empirically, inflation surprises have no independent …

We examine the effects of foreign currency-indexed debt upon inflationary expectations in Brazil and Mexico …. Conjecturing that markets will view increasing overhangs of foreign currency-indexed debt as a commitment technology that fiscally … results are consistent with the notion that increasing the share of dollar indexed debt may also permit some temporary …

debt and in so doing restricting private access to international capital markets or to default on domestic debt, thereby …Breaches in intercreditor equity are common ground during sovereign debt restructurings. In this paper I explore … residence-based breaches by studying patterns of discrimination between residents and foreign creditors during debt …

from the International Monetary Fund. I first present a model of sovereign debt issuance at various maturities featuring … IMF lending during debt crises on the sovereign's optimal maturity structure. Within the model, although IMF assistance is … able to catalyse private flows, this provides incentives for government to issue larger amounts of short-term debt, making …