Showing 1 - 10 of 337
Latin American economies are exposed to substantial external vulnerability. Domestic imbalances and terms of trade shocks are often exacerbated by sudden stops of capital inflow. In this paper we explore ways of overcoming external vulnerability, drawing lessons from a detailed comparison of the...
Persistent link: https://www.econbiz.de/10014071653
Persistent link: https://www.econbiz.de/10011776554
Persistent link: https://www.econbiz.de/10011577984
During the booms that precede crises in emerging economies, policy makers often struggle to limit capital flows and their expansionary consequences. The main policy tool for this task is sterilization--essentially a swap of international reserve for public bonds. However, there is an extensive...
Persistent link: https://www.econbiz.de/10014155474
We propose that the limited financial development of emerging markets is a significant factor behind the large share of dollar-denominated external debt present in these markets. We show that when financial constraints affect borrowing and lending between domestic agents, agents undervalue...
Persistent link: https://www.econbiz.de/10014118569
During the booms that precede crises in emerging economies, policymakers often struggle to limit capital flows and their expansionary consequences. The main policy tool for this task is a sterilization of capital inflows - essentially a swap of international reserves for public bonds. Despite...
Persistent link: https://www.econbiz.de/10014135711
While there is still much disagreement on the causes underlying recent emerging markets' crises, one factor that most observers have agreed upon is that contracting "dollar" (foreign currency) denominated external debt - as opposed to domestic currency debt - created balance sheet mismatches...
Persistent link: https://www.econbiz.de/10014151417
Monetary policy transmits through broad financial conditions--interest rates, asset prices, credit spreads and exchange rates--rather than through the policy rate alone. Yet current frameworks remain anchored around r*, the neutral interest rate. We introduce FCI*, the neutral level of financial...
Persistent link: https://www.econbiz.de/10015421903
Persistent link: https://www.econbiz.de/10001443022
Persistent link: https://www.econbiz.de/10001427889