Since 2007, three actors have been particularly important in U.S. Treasury auctions: The U.S. government, issuing $8.4 trillion in U.S. Treasury securities in 2010 alone; foreign official entities, purchasing $398 billion in U.S. Treasury securities in 2010 alone; and finally the Federal Reserve,...

Following the lead of Arghyrou and Kontonikas (2010), this paper presents an endogenous expectations-based model that conceptualizes the ongoing Greek sovereign debt crisis as a currency crisis in disguise. That is, instead of the crisis culminating in a real devaluation of the drachma, it has...

This paper asks whether bonanzas (surges) in net capital inflows increase the probability of banking crises and whether this is necessarily through a lending boom mechanism. A fixed effects regression analysis indicates that a baseline bonanza, identified as a surge of one standard deviation...

This paper analyzes capital inflow surges in emerging economies from 1980 to 2005. Estimated probit models are used, which discriminate well between surges associated with banking crises or recessions, and those surges that end without such events. The results indicate that the composition of...

Using panel data, this paper tries to explain compliance with World Bank conditionality as well as interruptions of IMF programs around election dates in the recipient countries. Compliance with World Bank conditionality is lower in election years and pre-election years. Using a proxy for IMF...

The IMF's 2002 proposal for a new Sovereign Debt Restructuring Mechanism (SDRM) attracted considerable criticism from both emerging market sovereign debt issuers and from private sector financial institutions. This paper outlines the features of the SDRM and its advantages as perceived by the...

This paper examines some of the economic issues that could be relevant to Mexico’s July 1st presidential election. These include the short-term impact of the 2008-2009 recession and recovery; the longer-term record of Mexico’s economy since the Partido Acción Nacional (PAN) party took power...

Outside observers could be forgiven for expecting Ecuador to suffer terribly during and after the recent global crisis. Two of the country’s largest sources of foreign earnings, petroleum exports and remittances from abroad, crashed during the global recession. Furthermore, lacking its own...

This paper studies the risk spillover among US Industrial Sectors and focuses on the connection between credit and liquidity risks. The proposed methodology is based on quantile regressions and considers the movements of CDS Industrial Sector Indices depending on common risk factors such as...

Todos los economistas deberían saber “qué sucedió” durante la crisis financiera de 2007-2009. Seleccionamos y resumimos 16 documentos, incluidos artículos académicos e informes de agencias reguladoras e internacionales. Esta lista de lecturas cubre los mecanismos y hechos claves del...