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Event studies represent an increasingly popular method to evaluate the welfare effects of economic policy decisions. The basic idea is that stock market reactions to the announcement of policy decisions contain superior information about the welfare effects of these decisions. This paper...
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The volatility of financial markets has attracted a lot of attention in recent years. However, while particular … that markets have become more volatile, there appears to have been no systematic increase in volatility over the last 20 …
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This article presents event studies that find a significant effect on dollar bond yield spreads when rating agencies put emerging-market sovereign bonds on review with negative outlook. The finding has two conditional implications. If rating agencies can be turned from late into early warning...
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international capital flows should deepen our knowledge of the underlying reasons for increasing capital flow volatility. As part of …
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