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Multiple Reserve Requirements, Exchange Rates, Sudden Stops and Equilibrium Dynamics in a Small Open Economy

Hernandez-Verme, Paula; Wang, Wen-Yao - Volkswirtschaftliche Fakultät, … - 2009

We model a typical Asian-crisis-economy using dynamic general equilibrium tech-niques. Exchange rates obtain from nontrivial fiat-currencies demands. Sudden stops/bank-panics are possible, and key for evaluating the merits of alternative ex-change rate regimes. Strategic complementarities...

Persistent link: https://www.econbiz.de/10005037756

Testing Creditor Moral Hazard in Sovereign Bond Markets: A Unified Theoretical Approach and Empirical Evidence

Ay?e Y. Evrensel; Kutan, Ali M. - William Davidson Institute, University of Michigan - 2004

, proposes a unified theoretical approach to test for IMF-induced creditor moral hazard, and provides empirical evidence, using … daily sovereign bond market spreads of Indonesia and Korea. The results suggest that IMF-related news regarding program …

Persistent link: https://www.econbiz.de/10005489921

Financial Sector Returns and Creditor Moral Hazard: Evidence from Indonesia, Korea, and Thailand

Tong, Jian; Xu, Chenggang - William Davidson Institute, University of Michigan - 2004

credibility of a prospective IMF program in reforming the financial sector characterized by domestic implicit guarantees. We … examine the changes in financial sector returns in response to IMF-related news such as announcements of program negotiations … and Korea. The findings are consistent with investor perception that negotiated IMF programs are non-credible due to …

Persistent link: https://www.econbiz.de/10005651501

The implications of TARGET2 in the European balance of payment crisis and beyond

Cesaratto, Sergio - Dipartimento di Economia Politica e Statistics, … - 2013

The paper provides an account of the meaning and implications of TARGET 2 in the Eurozone (EZ) balance of payments crisis. In this context, it discusses Hans-Werner Sinn’s thesis about a stealth bail-out of the EZ periphery by the ECB from a heterodox perspective. Financial liberalisation, a...

Persistent link: https://www.econbiz.de/10010690361

"Imbalances? What Imbalances? A Dissenting View"

Wray, L. Randall - Levy Economics Institute - 2012

It is commonplace to link neoclassical economics to 18th- or 19th-century physics and its notion of equilibrium, of a pendulum once disturbed eventually coming to rest. Likewise, an economy subjected to an exogenous shock seeks equilibrium through the stabilizing market forces unleashed by the...

Persistent link: https://www.econbiz.de/10010627286

IMF programs, financial and real sector performance, and the Asian crisis

Kutan, Ali M.; Muradoglu, Gulnur; Sudjana, Brasukra G. - In: Journal of Banking & Finance 36 (2012) 1, pp. 164-182

This paper has three objectives. First, using a richer and more comprehensive set of IMF-related news than previous … studies, we examine the impact of IMF-related news on both financial and real stock sector returns in Indonesia during the …, including whether and how IMF programs facilitate this adjustment. Third, we explore the interplay between IMF actions in crisis …

Persistent link: https://www.econbiz.de/10010582665

Assessing Macroprudential Policies: Case of Korea

Bruno, Valentina; Shin, Hyun Song - Griswold Center for Economic Policy Studies, Department … - 2013

This paper develops methods for assessing the sensitivity of capital flows to global financial conditions, and applies the methods in assessing the impact of macroprudential policies introduced by Korea in 2010. Relative to a comparison group of countries, we find that the sensitivity of capital...

Persistent link: https://www.econbiz.de/10010720747

Capital Flows, Cross-Border Banking and Global Liquidity

Bruno, Valentina; Shin, Hyun Song - Griswold Center for Economic Policy Studies, Department … - 2013

We investigate global factors associated with cross-border capital flows. We formulate a model of gross capital flows through the international banking system and derive a closed form solution that highlights the leverage cycle of global banks as being a prime determinant of the transmission of...

Persistent link: https://www.econbiz.de/10010720757

Capital Flows and the Risk-Taking Channel of Monetary Policy

Bruno, Valentina; Shin, Hyun Song - National Bureau of Economic Research (NBER) - 2013

We study the dynamics linking monetary policy with bank leverage and show that adjustments in leverage act as the linchpin in the monetary transmission mechanism that works through fluctuations in risk-taking. Motivated by the evidence, we formulate a model of the "risk-taking channel" of...

Persistent link: https://www.econbiz.de/10010821889

Stylized Facts before IMF-Supported Macroeconomic Adjustment

Santaella, Julio A. - In: IMF Staff Papers 43 (1996) 3, pp. 502-544

This paper analyzes the initial economic conditions before IMF financial arrangements are adopted. Evidence from 104 … IMF arrangements in 74 developing countries during 1973-91 indicates that there are important differences between the …

Persistent link: https://www.econbiz.de/10008915192