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Global Imbalances and the Financial Crisis: Products of Common Causes

Obstfeld, Maurice; Rogoff, Kenneth - C.E.P.R. Discussion Papers - 2009

This paper makes a case that the global imbalances of the 2000s and the recent global financial crisis are intimately connected. Both have their origins in economic policies followed in a number of countries in the 2000s and in distortions that influenced the transmission of these policies...

Persistent link: https://www.econbiz.de/10008557008

The Pricing of Sovereign Risk and Contagion during the European Sovereign Debt Crisis

Beirne, John; Fratzscher, Marcel - C.E.P.R. Discussion Papers - 2012

debt crisis. It shows that a deterioration in countries’ fundamentals and fundamentals contagion – a sharp rise in the … spreads during the crisis, not only for euro area countries but globally. By contrast, regional spillovers and contagion have … been less important, including for euro area countries. The paper also finds evidence for herding contagion – sharp …

Persistent link: https://www.econbiz.de/10011084109

Never Say Never: Commentary on a Policymaker’s Reflections

Obstfeld, Maurice - C.E.P.R. Discussion Papers - 2014

Stanley Fischer is a rarity among economic policymakers. He came to the policy world as an internationally recognized intellectual leader on macroeconomic theory and policy. He confronted numerous emerging market crises, including the globally systemic Asian crisis, as the IMF’s First Deputy...

Persistent link: https://www.econbiz.de/10011083383

International Debt Deleveraging

Fornaro, Luca - C.E.P.R. Discussion Papers - 2015

This paper provides a framework to understand debt deleveraging in a group of financially integrated countries. During an episode of international deleveraging, world consumption demand is depressed and the world interest rate is low, reflecting a high propensity to save. If exchange rates are...

Persistent link: https://www.econbiz.de/10011196040

Banks, Government Bonds, and Default: What do the Data Say?

Gennaioli, Nicola; Martin, Alberto; Rossi, Stefano - C.E.P.R. Discussion Papers - 2014

We analyze holdings of public bonds by over 20,000 banks in 191 countries, and the role of these bonds in 20 sovereign defaults over 1998-2012. Banks hold many public bonds (on average 9% of their assets), particularly in less financially-developed countries. During sovereign defaults, banks...

Persistent link: https://www.econbiz.de/10011083481

Globalization and Risk Sharing

Broner, Fernando A; Ventura, Jaume - C.E.P.R. Discussion Papers - 2006

This paper presents a theoretical study of the effects of globalization on risk sharing and welfare. We model globalization as a gradual and exogenous increase in the fraction of goods that are tradable. In the absence of frictions, globalization opens new goods markets and raises welfare. We...

Persistent link: https://www.econbiz.de/10005656234

Enforcement Problems and Secondary Markets

Broner, Fernando A; Martin, Alberto; Ventura, Jaume - C.E.P.R. Discussion Papers - 2007

There is a large and growing literature that studies the effects of weak enforcement institutions on economic performance. This literature has focused almost exclusively on primary markets, in which assets are issued and traded to improve the allocation of investment and consumption. The general...

Persistent link: https://www.econbiz.de/10005791368

Sovereign Risk and Secondary Markets

Broner, Fernando A; Martin, Alberto; Ventura, Jaume - C.E.P.R. Discussion Papers - 2007

Conventional wisdom says that, in the absence of sufficient default penalties, sovereign risk constraints credit and lowers welfare. We show that this conventional wisdom rests on one implicit assumption: that assets cannot be retraded in secondary markets. Once this assumption is relaxed, there...

Persistent link: https://www.econbiz.de/10005136448

Rethinking the Effects of Financial Liberalization

Broner, Fernando A; Ventura, Jaume - C.E.P.R. Discussion Papers - 2010

During the last few decades, many emerging markets have lifted restrictions on cross-border financial transactions. The conventional view was that this would allow these countries to: (i) receive capital inflows from advanced countries that would finance higher investment and growth; (ii) insure...

Persistent link: https://www.econbiz.de/10008784713

Sovereign Default, Domestic Banks and Financial Institutions

Gennaioli, Nicola; Martin, Alberto; Rossi, Stefano - C.E.P.R. Discussion Papers - 2010

We build a model where sovereign defaults weaken banks’ balance sheets because banks hold sovereign bonds, causing private credit to decline. Stronger financial institutions boost default costs by amplifying these balance-sheet effects. This yields a novel complementarity between public debt...

Persistent link: https://www.econbiz.de/10008466349