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

Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.

Objekttyp

  • Arbeitspapier

Beteiligte

  • Cavallo, Eduardo A.
  • Izquierdo, Alejandro
  • León-Díaz, John J.
  • Inter-American Development Bank (IDB)

Entstanden

  • 2017

Ähnliche Objekte (12)