Showing 1 - 10 of 19
This paper argues that if policymakers seek to enhance global liquidity, then the international community must provide a higher and better coordinated level of fiscal support than it has in the past. Loans to troubled sovereigns or financial institutions imply a credit risk that ultimately must...
Persistent link: https://www.econbiz.de/10013120324
A key precursor of twentieth-century financial crises in emerging and advanced economies alike was the rapid buildup of leverage. Those emerging economies that avoided leverage booms during the 2000s also were most likely to avoid the worst effects of the twenty-first century's first global...
Persistent link: https://www.econbiz.de/10013121927
system: international liquidity and exchange rate management. Despite radical changes since World War II in the market …
Persistent link: https://www.econbiz.de/10013092069
This paper surveys the evolution of international capital mobility since the late nineteenth century. We begin with an overview of empirical evidence on the fall and rise of integration in the global capital market. A discussion of institutional developments focuses on the use of capital...
Persistent link: https://www.econbiz.de/10012774957
changing demands for modern central bank interventions in the economy. Financial instability, followed by WWII, left a world …
Persistent link: https://www.econbiz.de/10012954933
Gross stocks of foreign assets have increased rapidly relative to national outputs since 1990, and the short-run capital gains and losses on those assets can amount to significant fractions of GDP. These fluctuations in asset values render the national income and product account measure of the...
Persistent link: https://www.econbiz.de/10012762565
This paper studies how several macrofinancial factors are associated over time with the evolution of covered interest parity (CIP) deviations in the decade after the Global Financial Crisis. Changes in a number of risk- and policy-related factors have a significant association with the evolution...
Persistent link: https://www.econbiz.de/10012865278
inescapable in the real world of asymmetric information and imperfect contract enforcement. I argue, however, that in confronting …
Persistent link: https://www.econbiz.de/10013224934
The exchange-rate regime is often seen as constrained by the monetary policy trilemma, which imposes a stark tradeoff among exchange stability, monetary independence, and capital market openness. Yet the trilemma has not gone without challenge. Some (e.g., Calvo and Reinhart 2001, 2002) argue...
Persistent link: https://www.econbiz.de/10013225964
Once one recognizes that governments borrow international reserves and exercise other policy options to defend fixed exchange rates during currency crises, the question arises: What factors determine a government's decision to abandon a currency peg or hang on? In a setting of purposeful action...
Persistent link: https://www.econbiz.de/10013213429