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Equilibrium Growth in a Small Economy Facing an Imperfect World Capital Market

Turnovsky, Stephen J. - 1999

A growth model of a developing economy facing an upward sloping supply curve of debt is analyzed. Equilibrium is characterized by transitional dynamics in which consumption, capital, and debt converge to a common growth rate. The adjustment is through the debt-capital ratio, which drives the...

Persistent link: https://www.econbiz.de/10014073183

The global financial cycle, monetary policies and macroprudential regulations in small, open economies

Bauer, Gregory H.; Pasricha, Gurnain Kaur; Sekkel, Rodrigo - 2016

This paper analyzes the implications of the global financial cycle for conventional and unconventional monetary policies and macroprudential policy in small, open economies such as Canada. The paper starts by summarizing recent work on financial cycles and their growing correlation across...

Persistent link: https://www.econbiz.de/10011520366

An Empirical Study of Credit Shock Transmission in a Small Open Economy

Bedock, Nathan - 2012

In this paper we identify and measure the effects of credit shocks in a small open economy. To incorporate information … theoretical framework of the financial accelerator, we approximate the external finance premium with credit spreads. We find that … an adverse global credit shock generates a significant and persistent economic slowdown in Canada; the Canadian external …

Persistent link: https://www.econbiz.de/10013103634

Search frictions, financial frictions and labour market fluctuations in emerging markets

Altuğ, Sumru; Kabaca, Serdar - 2014

This paper examines the role of the extensive and intensive margins of labour input in the context of a business cycle model with a financial friction. We document significant variation in the hours worked per worker for many emerging-market economies. Both employment and hours worked per worker...

Persistent link: https://www.econbiz.de/10010386690

Fiscal Policy and Default Risk in Emerging Markets

Cuadra, Gabriel - 2012

Emerging market economies typically exhibit a procyclical fiscal policy: public expenditures rise (fall) in economic expansions (recessions), whereas tax rates rise (fall) in bad (good) times. Additionally, the business cycle of these economies is characterized by countercyclical default risk....

Persistent link: https://www.econbiz.de/10013096667

Money Shocks in a Small Open Economy with Dollarization, Factor Price Rigidities, and Nontradeables

Sarajevs, Vadims - 2007

The impact of an unanticipated monetary shock in a small open economy with dollarization, factor price rigidities, and nontradeables is re-examined in an optimizing intertemporal general equilibrium model. The framework of an earlier study is extended to incorporate foreign real money balances...

Persistent link: https://www.econbiz.de/10012729029

A Model of a Small Open Emerging Economy with Full Consumption of Manufactured Products (Stock-Flow Consistent Approach)

Voloshyn, Ihor - 2016

The simple model of a small open emerging economy with full consumption of all manufactured products based on stock-flow consistent approach is developed. The transactions-flow matrix for emerging economy is defined. It takes into account banks' lending to produce goods by firms. The model...

Persistent link: https://www.econbiz.de/10012986024

Optimal Fear of Floating : The Role of Currency Mismatches and Fiscal Constraints

Ganapolsky, Eduardo J.J - 2014

Evidence suggests that developing countries are much more concerned with stabilizing the nominal exchange rate than developed countries. This paper presents a model to explain this observation, based on the hypotheses that both interventions and depreciations are costly. Interventions are costly...

Persistent link: https://www.econbiz.de/10014048599

Policy mix in a small open emerging economy with commodity prices

André, Marine C.; Armijo, Alberto; Espidio, Sebastián … - In: Latin American journal of central banking : LAJCB 4 (2023) 1, pp. 1-19

The article analyzes the interaction between monetary and fiscal policy in Mexico. We calibrated a semi-structural model for a small open economy, based on Aguilar and Ramírez-Bulos (2018), for Mexico by using quarterly data from 2001Q1 to 2019Q4. The fiscal policy block models the fiscal...

Persistent link: https://www.econbiz.de/10014382792

Bond Finance, Bank Credit, and Aggregate Fluctuations in an Open Economy

Chang, Roberto; Fernández Martin, Andrés; Gulan, Adam - 2016

bank credit becomes relatively more expensive, reflecting the scarcity of bank equity. More generally, the model is …

Persistent link: https://www.econbiz.de/10011535792