Showing 1 - 10 of 52
The use of different currencies in the invoicing of international trade transactions plays a major role in the international transmission of economic fluctuations. Existing studies argue that an exporter’s invoicing choice reflects structural aspects of her industry, such as market share and...
Persistent link: https://www.econbiz.de/10005868533
This paper provides novel micro-level evidence that cross-border bank flows are important for households' access to credit not only in emerging markets but also in advanced economies. These foreign bank flows can drive local credit credit booms that increase bank risk. We study how the influx of...
Persistent link: https://www.econbiz.de/10015195408
Persistent link: https://www.econbiz.de/10013370028
The fact that economies differ in size has important implications for international asset returns. I solve for the spread on international bonds and stocks in an endowment economy with complete asset markets and non-traded goods. The model predicts that larger countries have lower real interest...
Persistent link: https://www.econbiz.de/10013370071
This paper investigates Original Sin in the West African Economic and Monetary Union in the framework of regional integration and cooperation initiatives. The phenomenon describes the inability of countries to borrow in their currency. The central hypothesis is that smaller South-South...
Persistent link: https://www.econbiz.de/10014282673
The financial crises of the late 1990s in Asian and South American countries have once again highlighted the negative implications of development strategies characterized by high levels of foreign currency external indebtedness. In light of these events, South-South cooperation is conceived as...
Persistent link: https://www.econbiz.de/10014293747
This paper documents that cross-border investment income flows are important for explaining current account balances in major economies. Those investment incomes reflect returns on cross-border asset holdings and on balance often reach magnitudes around 5% of major economies' gross domestic...
Persistent link: https://www.econbiz.de/10014517459
Although the Millennium Development Goals (MDGs) have been ratified in global and national forums, they have not yet been incorporated into operational planning within governments or international organizations. The weak link between the policies and the investments needed for their...
Persistent link: https://www.econbiz.de/10010266495
Using a generalized vector autoregressive framework in which forecast-error variance decompositions are invariant to variable ordering, we propose measures of both total and directional volatility spillovers. We use our methods to characterize daily volatility spillovers across U.S. stock, bond,...
Persistent link: https://www.econbiz.de/10010277262
This article examines the extent of contagion and interdependence across the East Asian equity markets since early 1990s and compares the ongoing crisis with earlier episodes. Using the forecast error variance decomposition from a vector autoregression, we derive return and volatility spillover...
Persistent link: https://www.econbiz.de/10010277265