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Caballero, Ricardo J. - 2004

Most economists and observers place the lack of fiscal discipline at the core of the recent Argentine crisis. This begs the question of how countries like Belgium or Italy (pre-Maastricht) could run large fiscal deficits and accumulate debts far beyond those of Argentina, without experiencing...

Persistent link: https://www.econbiz.de/10012468161

International Liquidity Management : Sterilization Policy in Illiquid Financial Markets

Caballero, Ricardo J. - 2000

the international liquidity management aspect of sterilization over the traditional monetary one, a re-focus that seems … liquidity management issues more generally …

Persistent link: https://www.econbiz.de/10012471010

A Model of the Safe Asset Mechanism (SAM) : Safety Traps and Economic Policy

Caballero, Ricardo J. - 2013

. Safety traps share many common features with conventional liquidity traps, but also exhibit important differences, in …

Persistent link: https://www.econbiz.de/10012459925

Zombie Lending and Depressed Restructuring in Japan

Caballero, Ricardo J. - 2006

In this paper, we propose a bank-based explanation for the decade-long Japanese slowdown following the asset price collapse in the early 1990s. We start with the well-known observation that most large Japanese banks were only able to comply with capital standards because regulators were lax in...

Persistent link: https://www.econbiz.de/10012466526

The Myth of the Patient Japanese : Corporate Myopia and Financial Distress in Japan and the US

Hall, Brian J. - 1996

It is widely believed that the stock-market oriented US financial system forces corporate managers to behave myopically relative to their Japanese counterparts, who operate in a bank-based system. We hypothesize that if US firms are more myopic than Japanese firms, then episodes of financial...

Persistent link: https://www.econbiz.de/10012473010

Happy News from the Dismal Science : Reassessing the Japanese Fiscal Policy and Sustainability

Broda, Christian - 2004

We analyze fiscal policy and fiscal sustainability in Japan using a variant of the methodology developed in Blanchard … (1990). We find that Japan can achieve fiscal sustainability over a 100-year horizon with relatively small changes in the …. This means that monetization of the debt will have little impact on Japan's fiscal sustainability because Japan's problem …

Persistent link: https://www.econbiz.de/10012467699

Flight to Quality and Collective Risk Management

Caballero, Ricardo J. - 2006

We present a model of flight to quality episodes that emphasizes systemic risk and the Knightian uncertainty surrounding these episodes. Agents make risk management decisions with incomplete knowledge. They understand their own shocks, but are uncertain of how correlated their shocks are with...

Persistent link: https://www.econbiz.de/10012466519

Fire sales in a model of complexity

Caballero, Ricardo J.; Simser, Alp - In: The journal of finance : the journal of the American … 68 (2013) 6, pp. 2549-2587

Persistent link: https://www.econbiz.de/10010237379

Fire Sales in a Model of Complexity

Caballero, Ricardo J. - 2009

Financial assets provide return and liquidity services to their holders. However, during severe financial crises many … asset prices plummet, destroying their liquidity provision function at the worst possible time. In this paper we present a … not control or understand. The liquidity of the market quickly vanishes and a financial crisis ensues. The model exhibits …

Persistent link: https://www.econbiz.de/10012463170

A Dual Liquidity Model for Emerging Markets

Caballero, Ricardo J. - 2002

emerging economy, and those affecting borrowing from foreign lenders. This 'dual liquidity' model offers a parsimonious …

Persistent link: https://www.econbiz.de/10012469957