This paper extends the work of Kaminsky and Schmukler (2003) to the Baltic and Central Eastern European future Member States of the European Union, to test if the same short-run increase in cyclical volatility arising from financial integration is observed in this specific sample of “emerging...

Between 1991 and 1999, capital flows to 25 transition economies in Europe and the former Soviet Union differed widely in terms of overall levels and the share and composition of private flows. With some exceptions (notably Russia), the main form of private inflows was foreign direct investment....

A Tobin tax (TT) is studied by means of a portfolio model defined over the means and variances of two rates of return (domestic and foreign). When the correlation is negative, the TT is likely to decrease the speculative component of the share of portfolio invested abroad and to increase the...

This paper develops a new empirical measure of capital mobility. It tests the hypothesis that the degree of capital mobility can be estimated by measuring the reaction intensity of capital flows to shocks in interest rates, on a sample of eight European post-transitional economies. This...

Imperfect capital mobility is modelled in a two-country intertemporal general equilibrium framework by assuming that agents face costs of adjusting asset stocks in foreign asset markets. Goods markets are imperfectly competitive and goods prices are subject to sluggish adjustment. Simulation...

We recognize that intertemporal models of the current account (Frankel and Razin with Yuan 1996, or Baxter and Crucini 1993) imply a theory of consumption smoothing channels, and thus we build an empirical model on the theoretical foundations of Sachs (1982)'s optimizing model in order to...

This paper describes how the global financial crisis of 2007-2010 impacted trade both globally and more specifically for the European emerging economies, which in terms of GDP decline, were the most negatively impacted economies in the world. Just as with GDP, the trade of the European emerging...

This paper discusses Russia`s balance of payments developments in recent years: the initial macroeconomic imbalances and systemic shocks which set the stage for the critical balance of payments difficulties Russia faced in the early 1990s; the lessons from the early phases of Russia`s economic...

We discuss sources of volatility and vulnerability in the CEECs during the transition and leading up to EU accession. The Paper emphasizes the role of the transition shock as a source of extreme volatility on a much larger scale than the one observed during crises in emerging markets. The low...

This paper aims to explain differences in inflation between six central European economies - Croatia, the Czech Republic, Hungary, Poland, Slovakia and Slovenia - and the euro area in terms of differences in productivity growth between tradable and non-tradable sectors. The coverage of tradable...