political costs. Promoting stability requires preventing 'sudden stops' in capital flows, which are events in which foreign … the causal connection between lack of exposure to commercial trade and proclivity to sudden stops. On the theoretical … front, I show how exposure to trade raises the creditworthiness of countries and reduces the probability of sudden stops. In …

political costs. Promoting stability requires preventing “sudden stops” in capital flows, which are events in which foreign … the causal connection between lack of exposure to commercial trade and proclivity to sudden stops. On the theoretical … front, I show how exposure to trade raises the creditworthiness of countries and reduces the probability of sudden stops. In …