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News Shocks in Open Economies: Evidence from Giant Oil Discoveries

Ramey, Valerie Ann; Arezki, Rabah; Sheng, Liugang - National Bureau of Economic Research (NBER) - 2015

This paper explores the effect of news shocks on the current account and other macroeconomic variables using worldwide giant oil discoveries as a directly observable measure of news shocks about future output–the delay between a discovery and production is on average 4 to 6 years. We first...

Persistent link: https://www.econbiz.de/10011123640

Decreasing and increasing marginal impatience and the terms of trade in an interdependent world economy

Hirose, Ken-Ichi; Ikeda, Shinsuke - In: Journal of Economic Dynamics and Control 36 (2012) 10, pp. 1551-1565

Using a two-good, two-country model, we examine macroeconomic adjustment by allowing for decreasing and increasing marginal impatience (DMI and IMI). In the reference case where both countries have IMI, a negative output shock in one country lowers the interest rate and both countries' welfare...

Persistent link: https://www.econbiz.de/10010599375

The determinants of home bias puzzle in equity portfolio investment in Australia

Vo, Xuan Vinh - Volkswirtschaftliche Fakultät, … - 2008

Over the past decades, there is an increased trend in the international financial integration as countries are removing and relaxing controls on cross-border investment. Capital can flow easily to the destination that offers higher returns as the results of decreasing obstacles to international...

Persistent link: https://www.econbiz.de/10008740593

The determinants of home bias puzzle in equity portfolio investment in Australia

Vo, Xuan Vinh - Volkswirtschaftliche Fakultät, … - 2008

Persistent link: https://www.econbiz.de/10011257801

How do Capital Controls Affect the Transmission of Foreign Shocks?

Cooke, Dudley - Economic Policy Research Unit (EPRU), Økonomisk Institut - 2007

This paper studies the short-run transmission of foreign shocks in a small open economy with capital controls and a fixed exchange rate. Capital controls alter the transmission of shocks because endogenous changes in the domestic nominal interest rate affect savings and investment decisions. The...

Persistent link: https://www.econbiz.de/10005543549

The Malaysian Capital Controls: A Success Story?

Athukorala, Prema-Chandra - Crawford School of Public Policy, Australian National … - 2007

This paper aims to contribute to the debate on the use of temporary controls on capital outflows as a crisis resolution measure my examining the outcome of Malaysia’s radical response to the 1997-98 financial crisis. The analysis suggests that carefully designed temporary capital controls were...

Persistent link: https://www.econbiz.de/10004970720

Capital Controls: Myth and Reality--A Portfolio Balance Approach

Nicolas E. Magud E.; Carmen M.; Rogoff, Kenneth S. - Peter G. Peterson Institute for International Economics … - 2011

The literature on capital controls has (at least) four very serious apples-to-oranges problems: (i) There is no unified theoretical framework to analyze the macroeconomic consequences of controls; (ii) there is significant heterogeneity across countries and time in the control measures...

Persistent link: https://www.econbiz.de/10008853838

Capital controls, exchange rate volatility and risk premium

Frenkel, Michael; Stadtmann, Georg - Deutsche Bank Research - 2002

Capital controls lower the variability of the exchange rate and reduce the risk premium as well as the domestic interest rate. On the other hand, capital controls reduce the number of noise traders and, therefore, the risk-bearing capacity of the market, leading to higher interest rates and a...

Persistent link: https://www.econbiz.de/10008677297

Autonomia de política econômica, fragilidade externa e equilíbrio do balanço de pagamentos.

Oreiro, José Luís - In: Revista Economia e Sociedade 23 (2004) 1, pp. 22-22

The objective of this article is to present the economic theory of capital controls, that is, the theoretical arguments … that favor the introduction of capital controls. In this setting we will argue that economic theory have three main … controls in emerging economies are based in ideological arguments rather than on economic theory. …

Persistent link: https://www.econbiz.de/10004988640

How Effective are Capital Controls? Evidence from Malaysia

Athukorala, Prema-chandra; Jongwanich, Juthathip - Crawford School of Public Policy, Australian National … - 2012

This paper examines the role of capital controls as a macroeconomic policy tool in light of the Malaysian experience. It consists of an econometric analysis of quarterly data over the period 1990â€“2010 using newly constructed capital inflow and outflow policy indexes as well as analytical...

Persistent link: https://www.econbiz.de/10011144014