We compare the experience of Latin American external debt crises, in particular the one in the 80s, with the current European one. We do so with the aim of shedding some light on the needed adjustment mechanisms. We argue for the need of much larger debt relief in Europe. To address the moral...

Financial stability discussions have mainly revolved around the degree of leverage in financial institutions. Yet, some authors have argued that there might be mechanisms associated with unleveraged institutions that could entail financial instability. We aim to shed light on the possible...

Our aim is to explore how globalisation has affected consumption risk-sharing in emerging market economies. To that end, we implement a consumption risk-sharing test, using the Barro-Ursua Macroeconomic data set. Its span lets us explore historic episodes in which globalisation has markedly...

We are seeking to understand the costs of deflation. To that end, we assess the extent to which deflationary risks have surged in a selected group of European economies. Specifically, we develop a simple consumption-based asset pricing model and, based on it, we estimate a(n) (in)deflation risk...

We study variations in the distributions of the expected exchange rates in Brazil, Chile, Colombia, Mexico, and Peru due to interventions implemented in these countries. To this end, we first estimate the risk-neutral densities of the exchange rates based on derivatives market data, for one-day...

Information extracted from financial derivatives on interest rates is commonly used to forecast movements in such rates. Yet, such an extraction generally assumes that agents are risk-neutral. Thus, it might be useful to account for their risk-aversion when doing forecasts. This can be done...

Our interest is to understand the costs of deflation. Thus, we explore the extent to which deflationary risks have surged in a selected set of European economies. To that end, we develop a simple consumption-based asset pricing model and, based on it, we estimate a(n) (in)deflation risk premium....