This paper explores empirically whether Asian investors, and in particular foreign reserve managers, respond to capital gains or losses by rebalancing their portfolios of US Treasury securities. For a sample of 10 Asian countries from 1990 to end 2004, we find that capital losses, stemming from...

This paper uses event history analysis to test the significance of several macro-economic and bank-specific variables in explaining bank failures during the Venezuelan banking crisis of the mid-1990s. Poor bank profitability, proxied by a low net interest margin, and low GDP growth are found...

We estimate a system of equations to analyze whether bilateral trade and financial linkages influence business cycle synchronization directly and/or indirectly. Our paper builds upon the existing literature by using bilateral trade and financial flows for a small, open economy (Spain) as...

The aim of this paper is to review the experience of various dual-currency economies and analyze the main challenges faced by policymakers in formulating and conducting monetary policy. To that end, it distinguishes between countries with growing dollarization and those which have managed to...

This paper analyzes empirically what explains the low profitability of Chinese banks for the period 1997-2004. We find that better capitalized banks tend to be more profitable. The same is true for banks with a relatively larger share of deposits and for more X-efficient banks. In addition, a...

Spanish Abstract: En este artículo se describen las cuatro coordenadas de la política monetaria del Eurosistema -su objetivo, su estrategia, el marco operativo y el enfoque- teniendo en cuenta los rasgos esenciales que denotan la política monetaria de la eurozona con respecto a cualquier otro...

The paper tests whether there were events of contagion, and portfolio shift, in the sovereign bond markets of eleven emerging countries' between January 1995 and November 2001. From existing definitions, we narrow down the concept of contagion by focusing on pricing errors, after general market...

In this paper, we examine the determinants of Indian and Chinese FDI outflows. There are three sets of results. First, Chinese investment is attracted to more corrupt countries, while India is attracted to economies with better rule of law. Further analysis suggests that our result of China...

As the World Trade Organization finally changes its leadership after a long impasse to install a female candidate from the emerging world, Ms. Okonjo-Iweala, it seems like a good time to review the experience of one of the WTO’s most transformative moments, namely the accession of the most...

English abstract: As China’s global influence increases, the Chinese-style decision-making model with socialist characteristics is gaining wider attention. This is all the more the case as China’s economic planning seems to have been rather successfully, based on its fast economic growth and...