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The Internationalization of the RMB, Capital Market Openness, and Financial Reforms in China

Aizenman, Joshua - 2015

This paper provides an overview of Chinese financial and trade integration in recent decades, and the challenges facing China in the coming years. China had been a prime example of exported growth, benefiting from learning by doing, and by adopting foreign know-how, supported by a complex...

Persistent link: https://www.econbiz.de/10012457723

The Transmission of Federal Reserve Tapering News to Emerging Financial Markets

Aizenman, Joshua - 2014

and, intriguingly, find that the exchange rates of the robust group (and lesser extend equity prices and CDS spreads) were …

Persistent link: https://www.econbiz.de/10012458684

Misallocation and Financial Frictions : Some Direct Evidence From the Dispersion in Borrowing Costs

Gilchrist, Simon - 2012

Financial frictions distort the allocation of resources among productive units--all else equal, firms whose financing choices are affected by such frictions face higher borrowing costs than firms with ready access to capital markets. As a result, input choices may differ systematically across...

Persistent link: https://www.econbiz.de/10012460110

Determinants of Financial Stress and Recovery during the Great Recession

Aizenman, Joshua - 2010

In this paper, we explore the link between stress in the domestic financial sector and the capital flight faced by countries in the 2008-9 global crisis. Both the timing of emergence of internal financial stress in developing economies, and the size of the peak-trough declines in the stock price...

Persistent link: https://www.econbiz.de/10012462052

Financial Crisis and the Paradox of Under- and Over-Regulation

Aizenman, Joshua - 2009

This paper illustrates the paradox of prudential under-regulation in an economy that adopts financial reform, a reform which exposes the economy to future financial crises. There is individual-uncertainty about the crisis incidence, and the probability of the crisis is updated sequentially...

Persistent link: https://www.econbiz.de/10012463631

Capital Market Imperfections and the Theory of Optimum Currency Areas

Agenor, Pierre-Richard - 2008

This paper studies how capital market imperfections affect the welfare effects of forming a currency union. The analysis considers a bank-only world where intermediaries compete in Cournot fashion and monitoring and state verification are costly. The first part determines the credit market...

Persistent link: https://www.econbiz.de/10012464557

Expectations, Asset Prices, and Monetary Policy : The Role of Learning

Gilchrist, Simon - 2006

This paper studies the implications of financial market imperfections represented by a countercyclical external finance premium and the gradual recognition of changes in the drift of technology growth for the design of an interest rate rule. Asset price movements induced by changes in trend...

Persistent link: https://www.econbiz.de/10012466222

Exchange Rate Regimes and Financial-Market Imperfections

Aizenman, Joshua - 2000

This paper investigates the design of an exchange rate policy for an economy where the domestic capital market is … characterized by nominal contracts. We show that the choice of an exchange rate regime is intertwined with the financial structure … the desirable exchange rate stability. This result follows from the observation that greater exchange rate stability is …

Persistent link: https://www.econbiz.de/10012471012

Volatility and the Welfare Costs of Financial Market Integration

Agenor, Pierre-Richard - 1998

This paper examines the effect of volatility on the costs and benefits of financial market integration. The basic framework combines the costly state verification model and the contract enforceability approach. The welfare effects of financial market integration are assessed by comparing welfare...

Persistent link: https://www.econbiz.de/10012472031

Contagion and Volatility with Imperfect Credit Markets

Agenor, Pierre-Richard - 1997

This paper interprets contagion effects as a perceived increase (triggered by events occurring elsewhere) in the volatility of aggregate shocks impinging on the domestic economy. The implications of this approach are analyzed in a model with two types of credit market imperfections: domestic...

Persistent link: https://www.econbiz.de/10012472734