This paper provides evidence on the importance of distinguishing among episodes of capital flow reversals driven by stop or reversal of gross capital inflows (sudden stops) and those explained by large surges in gross capital outflows (sudden flights). Besides finding that they have different...

This paper compares domestic food, energy and core inflation in a sample of 44 countries during the recent commodities price boom-and-bust cycle, and explains differences across countries. In particular, it explores the role of structural and cyclical factors in explaining cross-country...

This paper provides a critical analysis of Kaminsky and Reinhart (1999) (KR), perhaps the most prominent empirical paper on causes of currency crises. After dealing with problems present in this paper, it proposes an aggregate leading indicator of crisis. The proposed indicator performs better...

This paper provides a critical analysis of Kaminsky and Reinhart (1999) (KR), perhaps the most prominent empirical paper on causes of currency crises. After dealing with problems present in this paper, it proposes an aggregate leading indicator of crisis. The proposed indicator performs better...

Large holdings of foreign assets and liabilities, along with increasing relevance of valuation effects—capital gains or losses—have characterized global financial integration. In this paper, we assess empirically the implications of stocks, flows and valuation adjustments in external crises...