Based on 25 years (1995-2019) of fully integrated sectoral data, this study builds on monetary circuit theory to examine the Italian experience of growing private debt followed by a long recession with balance-sheet restructuring. It is argued that this process cannot be identified as a typical...

In a context of uncertain returns to investment, a firm may face increasing costs of borrowing and uncertain value of its internal finance. Froot, Scharfstein, and Stein (1993) develop a framework where the firm can hedge against the fluctuations of its cash flow, in order to better coordinate...

This study surveys theoretical models providing alternative rationales for corporate hedging.

Emerging markets in the last decade increased the stock of foreign reserves and simultaneously managed to raise GDP growth while leaving short term foreign debt and investment in net fixed capital nearly unchanged. This work builds a model able to derive these facts as the result of greater...

Based on 25 years (1995-2019) of fully integrated sectoral data, this study builds on monetary circuit theory to examine the Italian experience of growing private debt followed by a long recession with balance-sheet restructuring. It is argued that this process cannot be identified as a typical...

By trading derivatives on the financial markets, a firm can hedge against the fluctuations of its internal funds, in order to better coordinate investment and financing decisions. This work shows how optimal investment, debt and hedging strategy can be strongly dependent on the mechanism linking...

This study draws attention to some stylised facts suggesting that the rise of reserves in the Emerging countries is still partially unexplained. Emerging countries in the last decade seem to have reduced their exposure to the risk of short term foreign capital outflow, as they have increased GDP...

This book examines the effects of trade on growth and poverty. It addresses the following questions:1) Which are the channels through which trade openness may affect the economic activities of a given country? ; 2) What are the effects of trade openness on growth? ; and 3) What are the effects...

In a context of uncertain returns to investment, a firm may face increasing costs of borrowing and uncertain value of its internal finance. By trading derivatives on the financial markets, the firm can hedge against the fluctuations of its cash flow, in order to better coordinate investment and...

This work provides empirical evidence on the determinants of corporate hedging using nonsurvey data for UK companies. Data on hedging are obtained from disclosures made in financial statement footnotes by 443 companies subject to UK accounting rules. Evidence is consistent with hypotheses of...