Policymakers and academics often associate large capital inflows with booms in asset prices. To date, however, methodical evidence of this association is still limited. This paper provides a systematic empirical analysis of the link between capital inflows and booms in asset prices. Using a...

Booms in house prices are leading indicators of financial crises. Therefore, understanding their causes is a key policy objective. Although theory suggests that large capital inflows are main factors behind these booms, empirical evidence about their association is still needed. This paper...

This paper analyzes the recent evolution and the actual level of international reserves in Chile using complementary approaches. First, we compare the current level of international reserves of Chile with other countries, using as controls a set of indicators that are traditionally used in the...

During the last decades, technological innovation has generated a major transformation in payment systems, stimulating a widespread use of different forms of electronic money and increasing substitutability between deposits and currency in transactions. A big advantage of deposits is that,...