Showing 1 - 10 of 10
financial sector; swift policy responses; and a sound macroeconomic environment with adequate reserves have helped the region to …
Persistent link: https://www.econbiz.de/10003913748
It is widely believed that local currency bond markets (LCBMs) can promote financial stability in developing countries. For instance, they can help mitigate the currency and maturity mismatch that contributed to the outbreak of the Asian financial crisis of 1997-1998. In this paper, we...
Persistent link: https://www.econbiz.de/10011920074
Although the global financial crisis of 2008 took root in the advanced countries, its shocks spread through the emerging economies, reflecting the increasingly interconnected global financial system. This paper develops an empirical methodology to test the contagion effect at the country level...
Persistent link: https://www.econbiz.de/10011703247
Gauging foreign (domestic) biases as the deviation of foreign (domestic) investors' actual portfolio allocation of a bond market from the same bond market's weight in global bond market, we investigate the determinants of foreign and domestic investment biases in 41 global bond markets. We find...
Persistent link: https://www.econbiz.de/10011791937
This paper investigates and tests the role of regional exposures in financial contagion from advanced to emerging market economies through the global banking network using data on cross-border bilateral bank claims and liability positions. We first examine whether an economy can become more...
Persistent link: https://www.econbiz.de/10011856333
In the postglobal financial crisis period, the central banks of the advanced economies pursued unconventional monetary policies, such as the United States (US) Federal Reserve's quantitative easing (QE). Those policies and their unwinding may significantly affect cross-border capital flows and...
Persistent link: https://www.econbiz.de/10011346243
In this study, we examine how public and private debt buildup is related to currency depreciation pressure. Our empirical analysis of a panel dataset of 59 advanced and emerging markets reveals that both private and public debt exacerbate currency vulnerability. However, the evidence of a...
Persistent link: https://www.econbiz.de/10012301208
done to strengthen our financial systems. As the world addresses the financial impact of the COVID-19 pandemic, the …
Persistent link: https://www.econbiz.de/10012232895
volatility during normal times. Lastly, a developed LCY bond market can serve as a buffer against monetary policy shocks …
Persistent link: https://www.econbiz.de/10014312897
This paper investigates whether the uncovered interest parity (UIP) will hold more firmly if the local currency bond markets (LCBMs) are more developed, and the presence of nonbank financial institutions (NBFIs) is expanded. Deviations in UIP decrease as LCBMs develop, while the patterns of the...
Persistent link: https://www.econbiz.de/10013540710