Krishna (1998) shows that a bilateral agreement between two countries render a multilateral agreement less attractive if the bilateral agreement is trade diverting. This paper combines Krishna’s model with the empirical approach of Anderson and van Wincoop (2003) to show that the estimated...

This paper investigates the nature of volatility spillovers between stock returns and a number of exchange rates in six Latin American countries and one European economy in the 1998-2006 period. We divide our sample into sub periods, prior to and after the introduction of the Euro and we apply...

This paper analyzes the evolution of fear of floating (FOF) and its effect on output in Chile, Colombia and Mexico. It shows that there has been a gradual rise in exchange-rate volatility as the period of floating lengthens in each country. The paper analyzes the implications of this evolution...

The Chinese economy has become one of the most important consumers of a broad range of commodities. This work aims at measuring the impact of China’s expansion on commodity prices and illustrate its effect on Latin American economies. It is found a positive and significant relation between...