decomposition analysis. The main results indicate that the contribution of global risk aversion to explain the evolution of debt …

, 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 …

gross (but not net) capital inflows in general increase the risk of a currency crisis, but looking at a disaggregated level …, gross portfolio flows increase the risk of a currency crisis for advanced economies, whereas gross FDI inflows decrease the … risk of a crisis for EMEs. Third, contagion has a very strong impact, consistent with the past literature, especially …

liability side, allowing investors sell domestic and foreign bonds and capturing changes in counterparty risk in a stylized way … prices are mainly affected by financiers' concern for counterparty risk: impact effects are deep and in line with the terms … cumulative effects have instead more mixed results on fluctuations. -- borrowing limits ; counterparty risk ; financial flows …

experiencing a favourable supply side shock consumes more against expected future output and spreads the risk by selling shares …

economy, reflecting borrowers' credit risk. The new analytical results are as follows. First, agents choose endogenously how …' funding. As for portfolios, secured bonds have particularly effective hedging properties in managing the terms of trade risk … source of risk which cannot be internationally diversified. -- financial flows ; borrowing limits ; creditworthiness ; risk …