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Linking net foreign portfolio debt and equity to exchange rate movements

Gardberg, Malin - 2018

Many currencies, especially those of countries with negative net foreign assets, tend to depreciate during times of financial turbulence. Using a panel of 26 currencies over the period 1/1997 - 6/2016, I show that the composition of net foreign assets matter for the exchange rate sensitivity to...

Persistent link: https://www.econbiz.de/10011926196

An Asymmetric Model on Seigniorage and the Dynamics of Net Foreign Assets

Dettmann, Georg - Dipartimento di Scienze Economiche, Facoltà di Economia - 2013

been considered one of the main reasons for the turbulences in the world economy since 2007. Economic theory suggests that … investigate on the mechanisms that allow the US to do so, this paper sets up a two country DGE model with asymmetric liquidity … Seigniorage and valuation effects to be able to run a continuous current account deficit. These mechanisms work in favour of their …

Persistent link: https://www.econbiz.de/10010700762

External financing risks : how important is the composition of the international investment position?

Cubeddu, Luis; Ahmed Hannan, Swarnali; Rabanal, Pau - 2021

Building on the vast literature, this paper focuses on the role of the structure of the international investment position (IIP) in affecting countries' external vulnerabilities. Using a sample of 73 advanced and emerging economies and new database on the IIP's currency composition, we find that...

Persistent link: https://www.econbiz.de/10012517927

Understanding the dynamics of the US external position

Evans, Martin D. D.; Fuertes, Alberto - 2011

Persistent link: https://www.econbiz.de/10009010008

Reducing large net foreign liabilities

Fidora, Michael; Schmitz, Martin; Tcheng, Céline - 2017

In light of persistently large net foreign liability (NFL) positions in several euro area countries, we analyse 138 episodes of sizeable NFL reductions for a broad sample of advanced and emerging economies. We provide stylised facts on the channels through which NFLs were reduced and estimate...

Persistent link: https://www.econbiz.de/10011659341

Large net foreign liabilities of euro area countries : risks, prospects and policy options

Zorell, Nico - 2017

Over recent years, several euro area countries have registered large and persistent net foreign liabilities. This paper examines the risks arising from these external stock imbalances, the prospects for their smooth unwinding and the menu of policy options. The paper demonstrates that external...

Persistent link: https://www.econbiz.de/10011732721

A Global Perspectiveon External Positions

Milesi-Ferretti, Gian Maria - 2005

This paper highlights the increased dispersion in net external positions in recent years, particularly among industrial countries. It provides a simple accounting framework that disentangles the factors driving the accumulation of external assets and liabilities (such as trade imbalances,...

Persistent link: https://www.econbiz.de/10014404202

Contagion of currency crises : some theoretical and empirical analysis

Karmann, Alexander; Greßmann, Oliver; Hott, Christian - 2002

Persistent link: https://www.econbiz.de/10001676512

Contagion of currency crises : some theoretical and empirical analysis

Karmann, Alexander; Greßmann, Oliver; Hott, Christian - 2002

Persistent link: https://www.econbiz.de/10001666554

Contagion of currency crises : some theoretical and empirical analysis

Karmann, Alexander; Greßmann, Oliver; Hott, Christian - 2002

This paper investigates contagion effects. In a model with highly and lowly informed investors we show that a currency crisis in one country can trigger a crisis in another country. Portfolio losses of the highly informed investors in one country will force them to withdraw capital from the...

Persistent link: https://www.econbiz.de/10010507018