This paper analyses the incidence and severity of sudden stops in euro area countries before and after the introduction of the ECB's asset purchase programmes. We define sudden stops as abrupt declines in private net financial inflows, i.e. total flows adjusted for EU and IMF loans and changes...

We study how the effect of global and domestic factors on capital flows towards emerging economies has changed in the last 25 years. We find that both the global financial crisis and the so-called ‘taper tantrum' event, when investors perceived the end of the US Federal Reserve's...

Climate change poses severe challenges to economic growth and financial stability, especially in developing countries with a more carbon-intensive economy and a greater exposure to climate-related damages. This paper proposes a simple model in which an emerging open economy, characterised by the...

In a panel covering a large number of countries from 1970 to 2003, we show that net portfolio flows play an important role in correcting external imbalances, since they are driven by common determinants represented by countries' demographic profiles, the quality of institutions, monetary...

Capital controls are seen as a means to promote financial stability or improve macroeconomic adjustment in economies with nominal rigidities and suboptimal monetary policy. Such controls may take various forms, including explicit or implicit taxation of cross-border financial flows and dual or...

This paper asks if bonanzas (i.e. surges) in net capital flows are associated with a higher likelihood of banking crises and whether this association is necessarily through a lending boom mechanism. Using a new database covering over one hundred countries during 1973-2008, the paper shows that...