Top down spillovers of sovereign default risk can have serious consequences for the private sector in emerging markets … sovereign risk affects corporate access to international capital markets, in the form of external credit (loans and bond … goes on to examine the 1993 to 2007 period, using additional measures of sovereign risk-sovereign bond spreads and …

effects on technological progress and welfare, which depend critically on the risk sharing capacity of the economy's financial … system. For example, we show that with efficient risk sharing more precise information adversely affects the equilibrium risk …

This paper uses a dynamic optimization model to estimate the welfare gains of hedging against commodity price risk for …

, supporting capital inflows and helping market participants to price, unbundle and transfer risk. There are tight regulations on … asset allocations by insurance and pension funds to prevent excessive risk taking. The development of derivatives markets in …. Theiroverdependence on bank credit as a source of funding could be reduced and their management of seasonal risk could be improved through …

policy and setting of the risk tolerance level in order to ensure consistent risk-bearing capacity and greater accountability …

During risk-off episodes, the yen is a safe haven currency and on average appreciates against the U.S. dollar. We … investigate the proximate causes of yen risk-off appreciations. We find that neither capital inflows nor expectations of the … participants’ risk perceptions trigger derivatives trading, which in turn lead to changes in the spot exchange rate without capital …

Why do many households remain exposed to large exogenous sources of non-systematic income risk? We use a series of …