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Emerging market economies are fertile ground for the development of real estate and other financial bubbles. Despite … value in the developed world. Bubbles are beneficial because they provide domestic stores of value and thereby reduce … capital flow reversals. We show that domestic financial underdevelopment not only facilitates the emergence of bubbles, but …
Persistent link: https://www.econbiz.de/10012467059
Emerging market economies are fertile ground for the development of real estate and other financial bubbles. Despite … value in the developed world. Bubbles are beneficial because they provide domestic stores of value and thereby reduce … capital flow reversals. We show that domestic financial underdevelopment not only facilitates the emergence of bubbles, but …
Persistent link: https://www.econbiz.de/10012784276
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...
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This paper constructs a Liquidity Mismatch Index (LMI) to gauge the mismatch between the market liquidity of assets and the funding liquidity of liabilities, for 2882 bank holding companies over 2002 to 2014. The aggregate LMI decreases from $4 trillion pre-crisis to -$6 trillion in 2008. We...
Persistent link: https://www.econbiz.de/10012973857
This paper implements a liquidity measure, “Liquidity Mismatch Index (LMI),” to gauge the mismatch between the market liquidity of assets and the funding liquidity of liabilities. We construct the LMIs for 2882 bank holding companies during 2002-2014 and investigate the time-series and...
Persistent link: https://www.econbiz.de/10012981612