, due to a changed perception in the country’s growth prospects, to an increase in the risk of domestic default, or to a … shift in investors’ attitudes toward risk. Often times, monetary and financial elements are combined. A drop in domestic …

’ (EMDE) external finance premia during risk-off shocks, especially for vulnerable countries. Using a panel dataset of 56 … year window before risk-off shocks experienced relatively lower external finance premia and exchange rate volatility during … and COVID-19 as risk-off shocks. Our identification relies on a difference-in-differences methodology with country fixed …

This paper analyzes the impact of limited enforceable international loans on international risk sharing and trade … exports. In contrast to existing studies, risk sharing is low for large elasticities of substitution between the domestic and …

Conventional wisdom suggests that financial liberalization can help countries insure against idiosyncratic risk. There … is little evidence, however, that countries have increased risk sharing despite recent widespread financial …, financial contracts are incomplete and enforceability of debt repayment is limited. Default risk of debt contracts constrains …

sovereign to corporate risk, among other considerations …

after controlling for other potential drivers of economic activity such as movements in sovereign risk and global financial … risk, among others. Second, on average, an identified adverse shock to the financial indicator generates a large and … associated to this shock. Lastly, fluctuations in this indicator also respond strongly to shocks in global financial risk …