This working paper was written by Amar Gande (Vanderbilt University) and David Parsley (Vanderbilt University).We study the effect of a sovereign credit rating change of one country on the sovereign credit spreads of other countries for 155 ratings change events from 1991 to 2000. We find...

This working paper was written by Dudley Cooke (Trinity College Dublin).I develop a two country general equilibrium model with heterogeneous price-setting firms to understand how shocks to monetary policy and aggregate labor productivity impact trade integration, which I capture through the...

This working paper was written by Yin-wong Cheung (University of California, Santa Cruz), Kon S. Lai (California State University, Los Angeles) and Michael Bergman (Lund University).The conventional view, as expounded by sticky-price models, is that price adjustment determines the PPP reversion...

This occasional paper was written by Hyun Song Shin (Princeton University).A widespread opinion before the credit crisis of 2007-8 was that securitization enhances financialstability by dispersing credit risk. After the credit crisis, securitization was blamed for allowing the“hot potato” of...

This occasional paper was written by Stephen Grenville (Lowy Institute for International Policy, Australian National University and Asian Development Bank Institute).Capital flows were at the heart of the Asian Crisis of 1997-8. The inflows were too large before the crisis, and the reversals...

This working paper was written by Dudley Cooke (Trinity College Dublin and Hong Kong Institute for Monetary Research).I develop a two country general equilibrium model with heterogeneous price-setting firms to understand how shocks to monetary policy and aggregate labor productivity impact trade...

This working paper was written by Yin-wong Cheung (University of California, Santa Cruz) and XingWang Qian (University of California, Santa Cruz).Motivated by the observed international reserve hoarding behavior in the post-1997 crisis period, we explore the Mrs Machlup’s wardrobe hypothesis...

This working paper is written by Edmund Ho-Cheung Ho (Hong Kong Monetary Authority) and Keith Law (Hong Kong Monetary Authority).This study examines the driving factors behind Asian firms’ choice of currency denomination (US dollar versus local currency) when issuing corporate bonds. Our...

This working paper is written by Peter Hordahl (Bank for International Settlements) and Giorgio Valente (Hong Kong Institute for Monetary and Financial Research).We study the relationship between international bond flows and exchange rate returns for a panel of emerging market economies (EMEs)....