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This paper proposes a framework to jointly study productivity and trade dynamics during financial crises. The persistent output loss caused by crises is driven by lower productivity growth, which is determined by changes in product entry and exit margins in domestic and export markets. We...
Persistent link: https://www.econbiz.de/10012842467
To understand the diverse impact of the crisis across emerging market countries, we explore the role of two shocks - the collapse in trade and the sharp decline in financial flows - in the transmission of the crisis from advanced economies to emerging market countries. We first develop a simple...
Persistent link: https://www.econbiz.de/10013141872
The literature on drivers of capital flows stresses the prominent role of global financial factors. Recent empirical work, however, highlights how this role varies across countries and time, and this heterogeneity is not well understood. We revisit this question by focusing on financial...
Persistent link: https://www.econbiz.de/10011847862
The literature on drivers of capital flows stresses the prominent role of global financial factors. Recent empirical work, however, highlights how this role varies across countries and time, and this heterogeneity is not well understood. We revisit this question by focusing on financial...
Persistent link: https://www.econbiz.de/10011927531
Many currencies, especially those of countries with negative net foreign assets, tend to depreciate during times of financial turbulence. Using a panel of 26 currencies over the period 1/1997 - 6/2016, I show that the composition of net foreign assets matter for the exchange rate sensitivity to...
Persistent link: https://www.econbiz.de/10011926196
Foreign portfolio flows constitute a key component of economic activity in small open economies such as Colombia. The dynamics of these flows are subject to the influence of both external (push) factors and domestic (pull) factors. Consequently, economic crises and episodes of financial distress...
Persistent link: https://www.econbiz.de/10014633706
Persistent link: https://www.econbiz.de/10011752320
quickly spread to other countries. The rapid propagation of the liquidity shock and the severe effects of the crisis on stock … shocks? Why were some stocks with similar characteristics and degrees of exposure to a market-wide shock more dramatically … and markets, there are reasons to believe that institutional investors played an important role in transmitting the shock …
Persistent link: https://www.econbiz.de/10013053314
the World Bank (WB). Finally, we find evidence of synchronization between MDBs and IMF during fiscal crises. …
Persistent link: https://www.econbiz.de/10011959415
Persistent link: https://www.econbiz.de/10013549747