Rancière, Romain; Tornell, Aaron; Vamvakidis, Athanasios - C.E.P.R. Discussion Papers - 2011
This paper constructs a new measure of currency mismatch in the banking sector that controls for bank lending to …-2008. Comparisons with previous currency mismatch measures that do not adjust for unhedged foreign currency borrowing illustrate the … advantages of the new approach. In particular, the new measure flagged the indirect currency mismatch vulnerabilities that were …