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I use monthly data on industrial production to estimate the distribution of international business cycle correlations since the 1980's, with focus on the current turmoil. The degree of international correlation in national business cycles since the end of 2008 is unprecedented in three decades....
Persistent link: https://www.econbiz.de/10008607504
This paper develops a dynamic two-country neoclassical stochastic growth model with incomplete markets. Short-term credit flows can be excessive and reverse suddenly. The equilibrium outcome is constrained inefficient due to pecuniary externalities. First, an undercapitalized country borrows too...
Persistent link: https://www.econbiz.de/10011124895
This study examines the effects of capital account restrictions on capital flows in nine Asian economies over the period 1995–2005 using panel regressions with fixed effects. The results show that capital controls significantly affect capital flows when such flows are disaggregated by asset...
Persistent link: https://www.econbiz.de/10009245399
The aim of this paper is to examine whether or not financial liberalization has triggered banking crises in developing countries. We focus in particular on the role of capital inflows as their volatilities threat economic stability. In the empirical model, based on Panel Logit estimation, we use...
Persistent link: https://www.econbiz.de/10011109586
in the rest of the world. For example, unlike in the rest of the world, the use of controls on capital outflows in …
Persistent link: https://www.econbiz.de/10011009833
This paper focuses on the impact of full capital account liberalization on macroeconomic volatility in Greece. According to the standard neoclassical model, such liberalization is to be desired because, among other advantages, it may reduce macroeconomic volatility. The link between...
Persistent link: https://www.econbiz.de/10009372530
This paper seeks to evaluate quantitatively how interbank and corporate cross-border flows shape business cycles in a monetary union. Using Bayesian techniques, we estimate a two-country DSGE model that distinguishes between Eurozone core and peripheral countries and accounts for national...
Persistent link: https://www.econbiz.de/10011190681
Stylized facts suggest that output volatility in OECD countries has declined in recent years. However, the causes and the nature of this decline have so far been analyzed mainly for the United States. In this paper, we analyze whether structural breaks in the dynamics and the volatility of the...
Persistent link: https://www.econbiz.de/10005755211
Is liberalization in developing countries good for growth even if it leads to crises? The answer is a clear yes. But then, how can we explain the less-than-stellar growth performance of Mexico, a prominent liberalizer and member of NAFTA? In this paper we address these questions by analyzing the...
Persistent link: https://www.econbiz.de/10004995009
expansionary fiscal/monetary policy mix implemented by the Fed and the US government. Concerning the spillovers to the world … economy, it is found that while the financial shock has spilled over to foreign countries through US housing and stock price … dynamics, as well as excess liquidity creation, the trade channel likely is the key transmission mechanism of the real shock. …
Persistent link: https://www.econbiz.de/10008839156