explosive mix of lack of policy credibility and world capital market imperfections that afflict emerging economies with national … risk of recurrent Sudden Stops …

cyclical pattern. Over that cycle, world asset prices, leverage, and capital flows move in concert with global growth … with measures of U.S. domestic and international dollar funding stress that themselves reflect global investors’ risk …

uncertainty is time-varying, and (2) countries have heterogeneous exposures to a world aggregate shock. We embed these features in …

idiosyncratic entrepreneurial risk-- a risk that introduces, not only a precautionary motive for saving, but also a wedge between …

the U.S. would experience a sudden stop of capital flows, which would unavoidably drag the world economy into a deep … instead that the root imbalance was of a different kind: The entire world had an insatiable demand for safe debt instruments … of exposing the economy to a systemic panic. This structural problem can be alleviated if governments around the world …