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Trade in secured debt, adjustment in haircuts and international portfolios

Trani, Tommaso - 2011 - This version: October 2011

economy, reflecting borrowers' credit risk. The new analytical results are as follows. First, agents choose endogenously how …' funding. As for portfolios, secured bonds have particularly effective hedging properties in managing the terms of trade risk … source of risk which cannot be internationally diversified. -- financial flows ; borrowing limits ; creditworthiness ; risk …

Persistent link: https://www.econbiz.de/10009349743

The International Medium of Exchange

Chahrour, Ryan - 2019

We propose a model of endogenous, persistent coordination on the international medium of exchange. An asset becomes the dominant international medium because it is widely held, and remains widely held because it is dominant. The country issuing the dominant asset is a net debtor, but earns an...

Persistent link: https://www.econbiz.de/10012864421

Managing Credit Bubbles

Martin, Alberto - 2014

are too low. In this environment, changes in investor sentiment or market expectations can give rise to credit bubbles …

Persistent link: https://www.econbiz.de/10013050667

How effective are capital controls in Asia?

Socorro Gochoco-Bautista, Maria; Juthathip Jongwanich; … - 2011 - Rev.

This study examines the effects of capital account restrictions on capital flows in nine Asian economies over the period 1995-2005 using panel regressions with fixed effects. The results show that capital controls significantly affect capital flows when such flows are disaggregated by asset type...

Persistent link: https://www.econbiz.de/10010528529

How Effective are Capital Controls in Asia?

Gochoco‐Bautista, Maria Socorro - 2011

Persistent link: https://www.econbiz.de/10013128050

When are Capital Controls Effective? Evidence from Malaysia and Thailand

Jongwanich, Juthathip - 2011

This study examines the impact of capital controls using monthly information to construct higher-frequency, quarterly indexes for Malaysia during the period 2000–2008 and Thailand over the period 2000–2010 in a vector auto-regression model. The results show that restrictions in Thailand have...

Persistent link: https://www.econbiz.de/10013124111

Capital Flows and Foreign Exchange Intervention

Cavallino, Paolo - 2017

Abstract I consider a small open economy model where international ﬁnancial markets are imperfect and the exchange rate is determined by capital ﬂows. I use this framework to study the effects of portfolio ﬂow shocks, derive the optimal foreign exchange intervention policy, and...

Persistent link: https://www.econbiz.de/10012972457

Restrictive policy impacts in emerging economies

Zehri, Chokri - In: Cogent economics & finance 8 (2020) 1, pp. 1-18

The policy responses to capital flows in emerging markets are multiple. However, capital inflow controls, if applied sufficiently broadly, can buttress all other policies by limiting the volume of capital inflows and address balance sheet vulnerabilities. The study analyzes the effects of...

Persistent link: https://www.econbiz.de/10013179583

Why the Feldstein-Horioka “Puzzle” Remains Unsolved

Felipe, Jesus; Fullwiler, Scott; Yusoph, Al-Habbyel - 2022

world characterized by high capital mobility) should have never been labeled as such. First, we show that the investment and …

Persistent link: https://www.econbiz.de/10013290178

International Liquidity and Exchange Rate Dynamics

Gabaix, Xavier - 2015

We provide a theory of the determination of exchange rates based on capital flows in imperfect financial markets … their required compensation for holding currency risk, thus impacting both the level and volatility of exchange rates. Our … theory of exchange rate determination in imperfect financial markets not only rationalizes the empirical disconnect between …

Persistent link: https://www.econbiz.de/10013034612