The current account reversals, large recessions, and price collapses that define Sudden Stops contradict the predictions of a large class of models in which the current account is a vehicle for consumption smoothing and investment financing. This paper shows that the quantitative predictions of...

The current account reversals, large recessions, and price collapses that define Sudden Stops contradict the predictions of a large class of models in which the current account is a vehicle for consumption smoothing and investment financing. This paper shows that the quantitative predictions of...

I study the impact of the COVID-19 pandemic on the formal employment of entrants from each post-Great Recession year. Using longitudinal Mexican social security records and an individual fixed-effects difference-in-differences design, I find that the pandemic caused more recent entrants from...