Capital markets have witnessed a rash of `Sudden Stops' during the last decade.Policy proposals to prevent these crises include creating indexed bond markets andproviding price guarantees for emerging market assets. Chapter 1 explores themacroeconomic implications of indexed bonds with a return...

This paper inquires how private bank regulation and liquidity in the US are related to the deviations from the covered interest parity (CIP) condition. We find evidence that bank liquidity effects on CIP deviations partially offset those resulting from regulatory changes in a sample of 11 OECD...

Following the economic and political reforms of the 1990s, the Peruvian economy experienced two decades of exceptional growth in the 2000s. How was inequality affected by the strong growth performance of 2004-19? Which were the main factors associated with these inequality changes? The...

A sizeable literature suggests that financial sector development could be an important enabler of the growth benefits of trade openness. We provide a comprehensive analysis of how financial development can affect the relationship between trade openness and growth using a dynamic panel threshold...

There is an important debate about how economies with different exchange rate regimes performed during the Great Recession and its ensuing recovery. While economic theory suggests that economies with fixed exchange rates are more affected and recover more slowly from global shocks than economies...

There is a well-established literature that documents the failure of the uncovered interest parity (UIP) condition. While a host of factors have been examined as possible reasons behind this result, the role of uncertainty is not fully understood. In this paper, we examine the extent to which...

The world economy has experienced four global recessions over the past seven decades: in 1975, 1982, 1991, and 2009. During each of these episodes, annual real per capita global GDP contracted, and this contraction was accompanied by weakening of other key indicators of global economic activity....

This dissertation consists of two essays and studies topics on sovereign debt. The first essay analyzes, using duration models, the factors that affect the length of time a country in default is excluded from the international credit markets. It shows that disclosure of information by the debtor...

This study undertakes a quantitative investigation of the distributional and welfare consequences of a sharp reduction in inflation in a small open economy. In the first chapter, a monetary model of a small open economy with uninsured idiosyncratic earnings risk is analyzed. In this model,...

Access to private capital markets is the most salient difference between emerging market economies and other developing countries. However, in contrast to developed economies, emerging markets have had a troubled relationship with capital fows. In particular, balance of payments and debt crises...