Showing 1 - 10 of 13
In this paper the question of whether recent international policy initiatives to facilitate financial rescues in emerging market countries have influenced debtors' incentives to access official sector resources is examined. A country's systemic importance is highlighted as a key characteristic...
Persistent link: https://www.econbiz.de/10005734872
Many emerging market economy (EME) financial crises in the 1990s quickly spread to other countries. By contrast, spillovers from the Argentina crisis in 2001-02 appear to have been much more limited. Why do some crises spread widely and others do not? In this paper the joint importance of...
Persistent link: https://www.econbiz.de/10005435708
We develop a model in which countries can protect themselves against shocks by subscribing to a credit union that shares the key features of the International Monetary Fund, or by self-insuring through accumulating reserves. We assess the impact of the increasing heterogeneity of the Fund's...
Persistent link: https://www.econbiz.de/10008503134
Recent debate on the reform of the international financial architecture has highlighted the potentially important role of the official sector in crisis management. This paper examines how such public intervention in sovereign debt crises affects efficiency, ex ante and ex post. The results shed...
Persistent link: https://www.econbiz.de/10005435710
We examine the role of macroeconomic fluctuations, asset market liquidity, and network structure in determining contagion and aggregate losses in a stylised financial system. Systemic instability is explored in a financial network comprising three distinct, but interconnected, sets of agents -...
Persistent link: https://www.econbiz.de/10010839048
IMF programmes are frequently criticised for lacking focus and being ineffective in helping maintain private credit lines following a debt crisis. A theoretical model is developed to explore the interlinkages between result-based conditionality and creditor collective action problems. The...
Persistent link: https://www.econbiz.de/10005734892
Recent experience with financial crises has led to scepticism about the efficacy of crisis management measures that target short-term debt, such as the voluntary/concerted rollovers of interbank lines. Such measures, it is suggested, heighten financial fragility by encouraging creditors to...
Persistent link: https://www.econbiz.de/10005734900
This paper proposes a new method for measuring investor 'risk appetite'. Like other indicators in the literature, it is based on a comparison of risk-neutral probabilities of future returns with the corresponding subjective probabilities. The precise nature of the comparison is novel, however,...
Persistent link: https://www.econbiz.de/10005357380
This paper presents a theoretical model of international bank lending that may explain "herd-like" behaviour in lending to LDCs. The model assumes that there is a central money-centre bank whose behaviour influences that of regional banks by virtue of the fact that the regional bank can observe...
Persistent link: https://www.econbiz.de/10005357381
This paper analyses how the risk-sharing capacity of the financial system varies over the business cycle, leading to procyclical fragility. We show how financial imperfections contribute to underinsurance by entrepreneurs, generating an externality that leads to the build-up of systematic risk...
Persistent link: https://www.econbiz.de/10005245765