This paper updates earlier findings concerning the impact of collective-action clauses on borrowing costs. It has been argued that only in recent quarters have investors focused on the presence of these provisions, and that, given the international financial institutions' newfound resolve to...

Qualitative accounts have long emphasized the level of interest rates in the advanced industrial countries as a determinant of capital flows to emerging markets and spreads on external debt. Curiously, econometric studies relying on disaggregated data have lent little support to this hypothesis....

The protracted decline in output volatility – the Great Moderation – began to reach its limits by the mid-1990s, and volatility even showed a mild rise in some countries. Domestic shocks did not typically rise but we find that they did spread more rapidly across borders. One reason for the...

In this paper, we examine the role of the International Monetary Fund (IMF) in maintaining the access of emerging market economies to international capital markets. We find evidence that both macroeconomic aggregates and capital flows improve following the adoption of an IMF programme, although...

The issue of whether Mercosur needs closer macroeconomic policy harmonization, and in particular an exchange-rate stabilization agreement or even a single currency is discussed. Three views are offered on the links between exchange rates and regional integration. The option for monetary union is...

The Asian crisis was the third financial crisis of the 1990s. Even more than its predecessors it raised questions about the international community’s approach to crisis prevention and crisis management. It led reservations to be voiced, and not only in Asia, about full and unfettered...

This paper considers the role of hedge funds in international financial markets, with a focus on market manipulation, the issue of concern to smaller countries, and systemic stability, the issue of concern to larger ones. To address market integrity, it recommends expanding the coverage of the...