Arbeitspapier
Domestic antidotes to sudden stops
Sudden Stops in net capital flows can be prevented when the actions of domestic investors offset a reduction in foreign lending. This paper presents evidence that while sudden stops in gross inflows-i.e., a tightening of the external borrowing constraint-are associated with global conditions and therefore, are largely outside of the control of local policymakers, domestic factors such as low levels of liability dollarization, exchange rate flexibility, inflation targeting regimes, and a solid institutional background are important to prevent these episodes from becoming sudden stops in net capital flows. Under these favorable local conditions, domestic investors may perceive reduced risk in bringing in resources at the time of an external shock, thus insulating the country from this shock.
- Sprache
-
Englisch
- Erschienen in
-
Series: IDB Working Paper Series ; No. IDB-WP-851
- Klassifikation
-
Wirtschaft
International Finance: General
Current Account Adjustment; Short-term Capital Movements
Macroeconomic Aspects of International Trade and Finance: General
- Thema
-
Gross capital flows
Sudden stops
Retrenchments
Domestic versus foreign investors
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Cavallo, Eduardo A.
Izquierdo, Alejandro
León-Díaz, John J.
- Ereignis
-
Veröffentlichung
- (wer)
-
Inter-American Development Bank (IDB)
- (wo)
-
Washington, DC
- (wann)
-
2017
- DOI
-
doi:10.18235/0000905
- Handle
- Letzte Aktualisierung
-
10.03.2025, 11:44 MEZ
Datenpartner
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Objekttyp
- Arbeitspapier
Beteiligte
- Cavallo, Eduardo A.
- Izquierdo, Alejandro
- León-Díaz, John J.
- Inter-American Development Bank (IDB)
Entstanden
- 2017
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