During the recent Financial Crisis, as well as the 2010 and ongoing European Sovereign Debt Crisis, several governments had/have had to raise their debt levels in order to stabilize their economies. The principal problem attributed to sovereign debts, which is linked to their characteristics, is...

This paper analyzes the causes and implications of recent financial crises. Financial crises in general lead to changes in both theory and practice of economics. The paper takes an historical overview. The global consensus of economic theory during the 20th century is discussed. The paper...

In this research, we provide new empirical evidence on the importance of time-varying uncertainty for the exchange rate and the excess return in currency markets. Following an increase in monetary policy uncertainty, the dollar exchange rate appreciates in the medium run, while an increase in...

This study examines the optimal exchange rate regime for the South Korea gross domestic product, using time series data from 1965 to 2009. From the cointegration and the Granger causality test results, it was found that the pegged exchange rate regime (to the US dollar and to a basket of...

The empirical literature on "original sin" could be misleading. Eichengreen and Hausmann (1999) defined "original sin" as a liability dollarization bias and as a short term maturity bias. This is a source of concern for all emerging borrowers. However, the existing estimators of "original sin"...

The 1997 Asian financial crisis has revealed the limitations of the current state of monetary and financial monitoring system in most Asian countries in comprehensively addressing financial and monetary problems and issues. This paper attempts to propose a macro-prudential indicators (MPI)...

The empirical literature on "original sin" could be misleading. Eichengreen and Hausmann (1999) defined "original sin" as a liability dollarization bias and as a short term maturity bias. This is a source of concern for all emerging borrowers. However, the existing estimators of "original sin"...

The last decade has seen a worldwide move by emerging markets to adopt explicit or implicit inflation targeting regimes. A notable and often discussed exception to this trend, of course, is China which follows pegged exchange rate regime supported by capital controls. Another major exception is...

En los últimos diez años, las autoridades de política en distintos países emergentes han optado por limitar las fluctuaciones del valor de sus monedas respecto al dólar americano. En este documento se utiliza una relación de paridad de tasas de interés para identificar las fuentes...

This paper re-examines the association of country-specific macroeconomic fundamentals and sovereign risk. Our analysis focuses on 26 countries, including both developed and emerging economies, during the period 2000-2009. For both groups, while inflation and twin deficits are associated with...