Over the past two decades, emerging market economies have improved their external liability structures by increasing the share of debt denominated in local currencies, while foreign currency debt is considered a major source of financial instability. This paper embeds the debt denomination...

Over the past two decades, emerging market economies have improved their liability structures by increasing the share of their debt denominated in local currency. This paper embeds the debt denomination choice in a sudden stop model and explores how this alternative structure sheds new...

This paper examines the financial state-dependent effects of government spending in sudden stop-prone economies. Using a dataset of 30 small open economies, I find that an increase in government spending is more effective in stimulating consumption and appreciating the real exchange rate during...

We develop a two-sector, core-periphery country general equilibrium framework with endogenous financial crises to study foreign asset accumulation coordination among emerging market economies. Consistent with the policy prescription described by Bianchi(2011), we show that a national planner in...