Systemic sudden stops: The relevance of balance-sheet effects and financial integration

Arbeitspapier

Using a sample of 110 developed and developing countries for the period 1990-2004, this paper analyzes the characteristics of systemic sudden stops (3S) in capital flows and the relevance of balance-sheet effects in the likelihood of their materialization. A small supply of tradable goods relative to their domestic absorption - a proxy for potential changes in the real exchange rate - and large foreign-exchange denominated debts towards the domestic banking system are claimed to be key determinants of the probability of 3S, producing a balancesheet effect with non-linear impacts on the probability of 3S. While financial integration is up to a point associated with a higher likelihood of 3S, beyond that point financial integration is associated with a lower likelihood of 3S.

Objekt anzeigen

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: Working Paper ; No. 637

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Foreign Exchange ; Current Account Adjustment; Short-term Capital Movements ; International Lending and Debt Problems ; Open Economy Macroeconomics
• Thema: Balance of Payments crisis ; Sudden Stop ; capital flows ; dollarization ; real exchange rate ; balance sheet effects ; current account reversal ; Internationaler Finanzmarkt ; Kapitalmobilität ; Kapitalmangel ; Zahlungsbilanzungleichgewicht ; Wechselkurs ; Volatilität ; Wirtschaftsintegration ; Entwicklungsländer

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Calvo, Guillermo A. ; Izquierdo, Alejandro ; Mejía, Luis-Fernando
• Ereignis: Veröffentlichung
• (wer): Inter-American Development Bank, Research Department
• (wo): Washington, DC
• (wann): 2008

Weitere Informationen

• Handle: http://hdl.handle.net/10419/51498