evaded, they do affect the cross-market premium. Controls on capital inflows put downward pressure on domestic markets … international ones induced by capital controls. Crises affect financial integration by generating more volatility in the cross …-market premium and putting more downward pressure on domestic prices. "--World Bank web site …

experiences to discuss the implications of the current crisis for financial and macroeconomic policies going forward. "--World …

increasing volatility or by amplifying the adverse effect of external shocks. "--World Bank web site … point toward strong non-monotonic effects of openness and external shocks on growth and volatility. Moreover, all in all … foreign shocks. This paper provides an empirical evaluation of external exposure using panel data methods for a worldwide …

) High real exchange rate volatility is the result of highly volatile productivity shocks, and sharp oscillations in monetary …"The "New Open Economy Macroeconomics" argues that: (a) non-monetary factors have gained importance in explaining … exchange rate volatility, and (b) trade and financial openness may have a potential role of mitigating and/or amplifying real …

, and can surge at times of currency speculation. Heightened interest rate and exchange rate volatility pose practical risk … through the equity markets have not been the major contributor to increased international sources of volatility. In addition …