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Uncertainty about the fundamentals and the occurrence of sudden stops of capital flows : theory and empirics

Köhler-Geib, Fritzi - 2006

We analyse the effect of the uncertainty about the fundamentals on the probability of sudden stops of capital flows from a theoretical and empirical perspective. Our model predicts that the probability of crises increases with the uncertainty, ie. the dispersion of private signals about the true...

Persistent link: https://www.econbiz.de/10009746213

Current Account Reversals in Industrial Countries : Does the Exchange Rate Regime Matter?

Pancaro, Cosimo - 2013

This paper studies current account reversals in industrial countries across different exchange rate regimes. There are two major findings which have important implications for industrial economies with external imbalances: first, triggers of current account reversals differ between exchange rate...

Persistent link: https://www.econbiz.de/10013082531

The role of asymmetry and uncertainties in the capital flows- Economic Growth Nexus

Raheem, Ibrahim Dolapo; Le Roux, Sara; Asongu, Simplice - 2019

This study examines the asymmetry between capital flows and economic growth in 42 countries for the period 1990-2017. It further argues that uncertainty is an important channel through which asymmetry operates. As such, the three measures of uncertainty are macroeconomic, fiscal and...

Persistent link: https://www.econbiz.de/10012058445

Financial Frictions and the International Transmission of Shocks

Park, Woong Yong - 2019

This study presents a two-good, two-country model with financial frictions, where banks facing a borrowing constraint intermediate funds between households and firms. The endogenous fluctuations of international relative prices increase the business cycle co-movement across countries when...

Persistent link: https://www.econbiz.de/10012858531

International macroeconomic vulnerability

Velloso, João; Garcia, Márcio Gomes Pinto; Guillen, Diogo - 2022

We propose and implement an index of macroeconomic vulnerability to foreign shocks based on a structural time-varying bayesianVARwith a block-exogeneity hypothesis for a given pair of a large economy and a small open economy. The index is based on the sum of the responses of the small open...

Persistent link: https://www.econbiz.de/10012814956

Trade, gravity and sudden stops : on how commercial trade can increase the stability of capital flows

Cavallo, Eduardo A. (contributor) - 2006

Financial stability is an important policy objective, since crises are associated with large economic, social and political costs. Promoting stability requires preventing "sudden stops" in capital flows, which are events in which foreign financing abruptly disappears. This paper contributes to...

Persistent link: https://www.econbiz.de/10003775779

Sudden stop regimes and output : a Markov switching analysis

Bachmann, Andreas; Leist, Stefan - 2013

about them have recurred in the light of recently increased global stability risk and the quantitative easing that led to …

Persistent link: https://www.econbiz.de/10010199563

Trade, gravity, and sudden stops : on how commercial trade can increase the stability of capital flows

Cavallo, Eduardo A. (contributor) - 2005 - Rev

Financial stability is an important policy objective since crises are associated with big economic, social, and political costs. Promoting stability requires preventing “sudden stops” in capital flows, which are events in which foreign financing abruptly disappears. This paper contributes to...

Persistent link: https://www.econbiz.de/10003258546

Fickle Capital Flows and Retrenchment : Evidence From Bilateral Banking Data

Wang, Yabin - 2020

foreign and domestic investors or institutional risk, cannot explain bilateral data well. On the other hand, our results show … that global crises have an asymmetric impact on the risk attitudes of banking institutions towards country …-specific uncertainty: global crises make investors more risk-averse towards foreign uncertainty, but have no effect on the responsiveness …

Persistent link: https://www.econbiz.de/10012852252

Sudden stops and reserve accumulation in the presence of international liquidity risk

Lutz, Flora; Zessner-Spitzenberg, Leopold - 2020

We propose a small open economy model where agents borrow internationally and invest in liquid foreign assets to insure against liquidity shocks, which temporarily shut out the economy of short-term credit markets. Due to the presence of a pecuniary externality individual agents borrow too much...

Persistent link: https://www.econbiz.de/10012425195