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Sudden stops in net capital flows can be prevented if domestic investors either repatriate foreign-held assets or roll over their local asset holdings when foreign investors stop lending or sell off their local asset holdings. This paper presents evidence showing that domestic factors such as...
Persistent link: https://www.econbiz.de/10012267599
Sudden Stops in net capital flows can be prevented when the actions of domestic investors offset a reduction in foreign lending. This paper presents evidence that while sudden stops in gross inflows—i.e., a tightening of the external borrowing constraint—are associated with global conditions...
Persistent link: https://www.econbiz.de/10011784126
External capital accounts suffered during the COVID-19 crisis in Latin America and the Caribbean, but perhaps surprisingly the impacts were less severe than in previous crises. Gross capital inflows offset the outflows of residents, in sharp contrast to the global financial crisis of 2008/09...
Persistent link: https://www.econbiz.de/10014496950
Financial globalisation has led to large increases in foreign assets and liabilities in recent decades, increasing the scope for valuation changes that are potentially greater than trade or financial flows. We confirm that the United States enjoys an 'exorbitant privilege' on flow income from...
Persistent link: https://www.econbiz.de/10011797678
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investment was financed via private capital inflows. That said, foreign savings are not a good substitute for domestic savings … over the deficit episode and its aftermath, growth is slower than when countries rely on domestic savings. The paper … concludes that financing growth and investment out of foreign savings, while not impossible, is risky. …
Persistent link: https://www.econbiz.de/10011519098
developed, and strategies to achieve resilience to both inflows and outflows in a world where exogenous events may frequently …
Persistent link: https://www.econbiz.de/10010244171
rest of the world before the stop can no longer finance current account deficits. Sudden stops in gross capital flows are …
Persistent link: https://www.econbiz.de/10012052156