This paper presents a small open economy model to study the role of interest rate shocks in an emerging economy like Mexico. The interest rate is decomposed in two terms: an international rate and a country risk premia. First, it is shown that the model is able to explain several stylized facts...

In this paper we investigate empirically the determinants of credit default rates in the Peruvian system of Municipal Banks of Savings and Credit, using a dynamic fixed effects model with monthly data, over the period 2003-2010. We postulate that credit default rates are positively related to...

In this paper we investigate empirically the determinants of credit default rates in the Peruvian system of Municipal Banks of Savings and Credit, using a dynamic fixed effects model with monthly data, over the period 2003-2010. We postulate that credit default rates are positively related to...

This paper presents a small open economy model to study the role of interest rate shocks in an emerging economy like Mexico. The interest rate is decomposed in two terms: an international rate and a country risk premia. First, it is shown that the model is able to explain several stylized facts...