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International Sanctions and Dollar Dominance
Bianchi, Javier; Sosa Padilla, César - National Bureau of Economic Research - 2023
This paper investigates the implications of international financial sanctions for the reserve currency status of the US dollar. We propose a simple model of a reserve currency, demonstrate how the anticipation of financial sanctions can weaken the dollar's status, and evaluate the welfare...
Persistent link: https://www.econbiz.de/10014247945
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Global Risk, Non-Bank Financial Intermediation, and Emerging Market Vulnerabilities
Chari, Anusha - National Bureau of Economic Research - 2023
Over the last two decades, the unprecedented increase in non-bank financial intermediation, particularly open-end mutual funds and ETFs, accounts for nearly half of the external financing flows to emerging markets exceeding cross-border lending by global banks. Evidence suggests that investment...
Persistent link: https://www.econbiz.de/10014250161
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Uncertainty Shocks, Capital Flows, and International Risk Spillovers
Akinci, Ozge; Kalemli-Ozcan, Sebnem; Queralto, Albert - National Bureau of Economic Research - 2022
Foreign investors' changing appetite for risk-taking have been shown to be a key determinant of the global financial cycle. Such fluctuations in risk sentiment also correlate with the dynamics of UIP premia, capital flows, and exchange rates. To understand how these risk sentiment changes...
Persistent link: https://www.econbiz.de/10013210054
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Central Banks as Dollar Lenders of Last Resort : Implications for Regulation and Reserve Holdings
Das, Mitali; Gopinath, Gita; Kim, Taehoon; Stein, Jeremy C. - National Bureau of Economic Research - 2022
This paper explores how non-U.S. central banks behave when firms in their economies engage in currency mismatch, borrowing more heavily in dollars than justified by their operating exposures. We begin by documenting that, in a panel of 53 countries, central bank holdings of dollar reserves are...
Persistent link: https://www.econbiz.de/10013477280
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Fiscal Federalism and Monetary Unions
Berriel, Rafael; Gonzalez-Aguado, Eugenia; Kehoe, Patrick J. - National Bureau of Economic Research - 2023
their expenditures with nominal debt and inflation has a negative impact on aggregate productivity. If the monetary … fiscal externality. In this case, when a country-level fiscal authority chooses a higher level of nominal debt, it induces … the monetary authority to inflate more to reduce the level of distortionary taxes needed to finance the higher debt …
Persistent link: https://www.econbiz.de/10014447274
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International Reserve Management under Rollover Crises
Barbosa-Alves, Mauricio; Bianchi, Javier; Sosa Padilla, … - National Bureau of Economic Research - 2024
rollover crisis. In the model, it is optimal for the government to reduce its vulnerability by initially lowering debt, and … then increasing both debt and reserves as it approaches a safe zone. Furthermore, we find that issuing additional debt to …
Persistent link: https://www.econbiz.de/10014544672
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Fiscal Histories
Cochrane, John H. - National Bureau of Economic Research - 2022
The fiscal theory states that inflation adjusts so that the real value of government debt equals the present value of …
Persistent link: https://www.econbiz.de/10013361983
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The Performance of Emerging Markets During The Fed's Easing and Tightening Cycles : A Cross-Country Resilience Analysis
Aizenman, Joshua; Park, Donghyun; Aleem, Irfan; Uddin, … - National Bureau of Economic Research - 2024
We investigate the determinants of emerging markets performance during five U.S. Federal Reserve monetary tightening and easing cycles during 2004-2023. We study how macroeconomic and institutional conditions of an Emerging Market (EM) at the beginning of a cycle explain EM resilience during...
Persistent link: https://www.econbiz.de/10014528343
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Unstable Prosperity : How Globalization Made the World Economy More Volatile
Mendoza, Enrique G.; Quadrini, Vincenzo - National Bureau of Economic Research - 2023
) changes in demand and supply of public debt issued by advanced economies. We then show that the low-interest-rate environment …
Persistent link: https://www.econbiz.de/10013537726
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A Theory of Fear of Floating
Bianchi, Javier; Coulibaly, Louphou - National Bureau of Economic Research - 2023
Many central banks whose exchange rate regimes are classified as flexible are reluctant to let the exchange rate fluctuate. This phenomenon is known as "fear of floating". We present a simple theory in which fear of floating emerges as an optimal policy outcome. The key feature of the model is...
Persistent link: https://www.econbiz.de/10013537789