What determines the ability of governments from developing countries to access international credit markets? We examine this question using detailed data on sovereign bond issuances and public syndicated bank loans since 1982. We find that traditional measures of a country`s links with the rest...

One plausible mechanism through which financial market shocks may propagate across countries is through the effect of past gains and losses on investors` risk aversion. We first present a simple model on how heterogeneous changes in investors` risk aversion affect portfolio decisions and stock...

Is backward-looking behavior in pricing or imperfect credibility of stabilization efforts responsible for the failure of inflation rates to decline to targeted levels during many disinflation programs? This paper assesses the relative importance of these two factors during a number of...

Recent episodes of capital market volatility and contagion have brought up many questions about the behavior of international investors. We address some of these questions, exploring the behavior of different types of emerging market equity funds with monthly data on individual country holdings....

Using company-level data, this paper examines the relative stock-market performance of firms with different foreign-exchange exposures around the time of the 1994/95 Mexican crisis. Contrary to what one might have expected given the alleged peso overvaluation, exporting firms outperformed the...

Does country transparency affect international portfolio investment? We examine this and related questions using some new measures of transparency and a unique micro dataset on international portfolio holdings. We distinguish between government and corporate transparency. There is clear evidence...

In this paper, we examine the degree of herding and momentum trading among emerging market mutual funds. We use a novel database containing the country holdings of hundreds of individual funds on a monthly basis for the period 1996-2000. Overall, there is substantial heterogeneity in the...

This paper introduces a new comprehensive database of macroprudential policies, which combines information from various sources and covers 134 countries from January 1990 to December 2016. Using these data, we first confirm that loan-targeted instruments have a significant impact on household...

Has monetary policy in advanced economies been less effective since the global financial crisis because of deteriorating household balance sheets? This paper examines the question using household data from the United States. It compares the responsiveness of household consumption to monetary...

This paper takes a new approach to assess the costs and benefits of using different policy tools-macroprudential, monetary, foreign exchange interventions, and capital flow management-in response to changes in financial conditions. The approach evaluates net benefits of policies using quadratic...