Showing 1 - 10 of 11
This study assesses the role of the Asian financial crisis of the late 1990s in the emergence and persistence of the large current account surpluses across non-China emerging Asia, which have been a significant counterpart to the U.S. current account deficit. Using panel data encompassing nearly...
Persistent link: https://www.econbiz.de/10012722751
Existing studies using low-frequency data have found that macroeconomic shocks contribute little to international stock market covariation. However, these papers have not accounted for the presence of asymmetric information where sophisticated investors generate private information about the...
Persistent link: https://www.econbiz.de/10012732434
Using a unique high-frequency futures dataset, we characterize the response of U.S., German and British stock, bond and foreign exchange markets to real-time U.S. macroeconomic news. We find that news produces conditional mean jumps; hence high-frequency stock, bond and exchange rate dynamics...
Persistent link: https://www.econbiz.de/10012732503
This paper examines the current thinking on exchange-rate pass-through to both import prices and consumer prices and estimates the extent to which they have fallen in the G-7 countries since the late 1970s and 1980s. For import-price pass-through we find that all countries experience a numerical...
Persistent link: https://www.econbiz.de/10012734285
We investigate the impact of two types of financial liberalizations on short- and long-horizon capital flows to emerging markets in a framework that controls for push and pull factors. The first type of liberalization, a reduction in capital controls, is countrywide but uncertain, because its...
Persistent link: https://www.econbiz.de/10012735541
Exchange market pressure (EMP), the sum of exchange rate depreciation and reserve outflows (scaled by base money), summarizes the flow excess supply of money in a managed exchange rate regime. Examining Brazil, Chile, Mexico, Indonesia, Korea, and Thailand, this paper finds that monetary policy...
Persistent link: https://www.econbiz.de/10012782584
We construct, on the basis of an original methodology and database, composite indices to measure domestic financial development in 26 emerging economies, using mature economies as a benchmark. Twenty-two variables are used and grouped according to three broad dimensions: (i) institutions and...
Persistent link: https://www.econbiz.de/10012765429
Were the U.S. to persistently earn substantially more on its foreign investments (quot;U.S. claimsquot;) than foreigners earn on their U.S. investments (quot;U.S. liabilitiesquot;), the likelihood that the current environment of sizeable global imbalances will evolve in a benign manner...
Persistent link: https://www.econbiz.de/10012707675
This paper explains the IMF approach to economic stabilization. It argues that a Fund-supported program is a process, comprising six broadly defined phases, that evolves along a multiplicity of potential pathways. The paper discusses the three-pronged approach to stabilization at the core of all...
Persistent link: https://www.econbiz.de/10012782594
In this paper, we take a systematic look at global imbalances. First, we provide a definition of the phenomenon, and relate global imbalances to widening external positions of systemically important economies that reflect distortions or entail risks for the global economy. Second, we provide an...
Persistent link: https://www.econbiz.de/10012753872