Current Account Reversals And Currency Crises

Author : Mr.Gian Milesi-Ferretti
Publisher : International Monetary Fund
ISBN 13 : 1451952422
Total Pages : 45 pages
Book Rating : 4.21/5 ( download)

DOWNLOAD NOW!

Download or read book Current Account Reversals and Currency Crises written by Mr.Gian Milesi-Ferretti and published by International Monetary Fund. This book was released on 1998-06-01 with total page 45 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper studies large reductions in current account deficits and exchange rate depreciations in low- and middle-income countries. It examines which factors help predict the occurrence of a reversal or a currency crisis, and how these events affect macroeconomic performance. Both domestic factors, such as the low reserves, and external factors, such as unfavorable terms of trade, are found to trigger reversals and currency crises. The two types of events are, however, distinct; an exchange rate crash is associated with a fall in output growth and a recovery thereafter, while for reversals there is no systematic evidence of a growth slowdown.

Author : Gian Maria Milesi-Ferretti
Publisher :
ISBN 13 :
Total Pages : 44 pages
Book Rating : 4.12/5 ( download)

DOWNLOAD NOW!

Download or read book Current Account Reversals and Currency Crises written by Gian Maria Milesi-Ferretti and published by . This book was released on 2006 with total page 44 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper studies large reductions in current account deficits and exchange rate depreciations in low- and middle-income countries. It examines which factors help predict the occurrence of a reversal or a currency crisis, and how these events affect macroeconomic performance. Both domestic factors, such as the low reserves, and external factors, such as unfavorable terms of trade, are found to trigger reversals and currency crises. The two types of events are, however, distinct; an exchange rate crash is associated with a fall in output growth and a recovery thereafter, while for reversals there is no systematic evidence of a growth slowdown.

Author : Gian Maria Milesi-Ferretti
Publisher :
ISBN 13 :
Total Pages : 38 pages
Book Rating : 4.51/5 ( download)

DOWNLOAD NOW!

Download or read book Current account reversals and currency crises written by Gian Maria Milesi-Ferretti and published by . This book was released on 1998 with total page 38 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Author : Mr.Gian Milesi-Ferretti
Publisher : International Monetary Fund
ISBN 13 : 1451858221
Total Pages : 17 pages
Book Rating : 4.28/5 ( download)

DOWNLOAD NOW!

Download or read book Sharp Reductions in Current Account Deficits written by Mr.Gian Milesi-Ferretti and published by International Monetary Fund. This book was released on 1997-12-01 with total page 17 pages. Available in PDF, EPUB and Kindle. Book excerpt: The paper studies determinants and consequences of sharp reductions in current account imbalances (reversals) in low- and middle-income countries. It poses two questions: what triggers reversals, and what factors explain how costly reversals are? It finds that both domestic variables, such as the current account balance, openness to trade, and the level of reserves, and external variables, such as terms of trade shocks, U.S. real interest rates, and growth in industrial countries, seem to play important roles in explaining reversals in current account imbalances. It also finds some evidence that countries with a less appreciated real exchange rate, higher investment, and more openness before the reversal tend to grow faster after a reversal occurs.

Author : Barry J. Eichengreen
Publisher :
ISBN 13 :
Total Pages : 72 pages
Book Rating : 4.85/5 ( download)

DOWNLOAD NOW!

Download or read book Current Account Reversals written by Barry J. Eichengreen and published by . This book was released on 2005 with total page 72 pages. Available in PDF, EPUB and Kindle. Book excerpt: "Using panel data and case studies, we analyze the pre-1970 history of international capital flows and current account reversals. Considering a sample of emerging markets and advanced economies with per capita GDPs at least 60 per cent those of the lead country, we show that the incidence of reversals has been unusually great in recent years. The only prior period that matched the last three decades in terms of the frequency and magnitude of reversals was the 1920s and 1930s, decades notorious for the instability of capital flows. In contrast, reversals were both less common and smaller in the Bretton Woods and pre-World War I gold standard eras"--NBER website

Author : Paul Krugman
Publisher : University of Chicago Press
ISBN 13 : 0226454649
Total Pages : 367 pages
Book Rating : 4.41/5 ( download)

DOWNLOAD NOW!

Download or read book Currency Crises written by Paul Krugman and published by University of Chicago Press. This book was released on 2007-12-01 with total page 367 pages. Available in PDF, EPUB and Kindle. Book excerpt: There is no universally accepted definition of a currency crisis, but most would agree that they all involve one key element: investors fleeing a currency en masse out of fear that it might be devalued, in turn fueling the very devaluation they anticipated. Although such crises—the Latin American debt crisis of the 1980s, the speculations on European currencies in the early 1990s, and the ensuing Mexican, South American, and Asian crises—have played a central role in world affairs and continue to occur at an alarming rate, many questions about their causes and effects remain to be answered. In this wide-ranging volume, some of the best minds in economics focus on the historical and theoretical aspects of currency crises to investigate three fundamental issues: What drives currency crises? How should government behavior be modeled? And what are the actual consequences to the real economy? Reflecting the latest thinking on the subject, this offering from the NBER will serve as a useful basis for further debate on the theory and practice of speculative attacks, as well as a valuable resource as new crises loom.

Author : Lubos Komarek
Publisher :
ISBN 13 :
Total Pages : 35 pages
Book Rating : 4.21/5 ( download)

DOWNLOAD NOW!

Download or read book Currency Crises, Current Account Reversals and Growth written by Lubos Komarek and published by . This book was released on 2005 with total page 35 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Author : Sebastian Edwards
Publisher :
ISBN 13 :
Total Pages : 86 pages
Book Rating : 4.42/5 ( download)

DOWNLOAD NOW!

Download or read book Thirty Years of Current Account Imbalances, Current Account Reversals and Sudden Stops written by Sebastian Edwards and published by . This book was released on 2004 with total page 86 pages. Available in PDF, EPUB and Kindle. Book excerpt: "In this paper I analyze the anatomy of current account adjustments in the world economy during the last three decades. The main findings may be summarized as follows: (a) Major reversals in current account deficits have tended to be associated to sudden stops' of capital inflows. (b) The probability of a country experiencing a reversal is captured by a small number of variables that include the (lagged) current account to GDP ratio, the external debt to GDP ratio, the level of international reserves, domestic credit creation, and debt services. (c) Current account reversals have had a negative effect on real growth that goes beyond their direct effect on investments. (d) There is persuasive evidence indicating that the negative effect of current account reversals on growth will depend on the country's degree of openness. More open countries will suffer less in terms of lower growth than countries with a lower degree of openness. (e) I was unable to find evidence supporting the hypothesis that countries with a higher degree of dollarization are more severely affected by current account reversals than countries with a lower degree of dollarization. And, (f) the empirical analysis suggests that countries with more flexible exchange rate regimes are able to accommodate the shocks stemming from a reversal better than countries with more rigid exchange rate regime"--NBER website

Author : Mr.Ilan Goldfajn
Publisher : International Monetary Fund
ISBN 13 : 1451846193
Total Pages : 33 pages
Book Rating : 4.95/5 ( download)

DOWNLOAD NOW!

Download or read book Does Monetary Policy Stabilize the Exchange Rate Following a Currency Crisis? written by Mr.Ilan Goldfajn and published by International Monetary Fund. This book was released on 1999-03-01 with total page 33 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper provides evidence on the relationship between monetary policy and the exchange rate in the aftermath of currency crises. It analyzes a large data set of currency crises in 80 countries for the period 1980-98. The main question addressed is: Can monetary policy increase the probability of reversing a postcrisis undervaluation through nominal appreciation rather than higher inflation? We find that tight monetary policy facilitates the reversal of currency undervaluation through nominal appreciation. When the economy also faces a banking crisis, the results are not robust: depending on the specification, tight monetary policies may not have the same effect.

Author : Sebastian Edwards
Publisher : University of Chicago Press
ISBN 13 : 0226184994
Total Pages : 699 pages
Book Rating : 4.99/5 ( download)

DOWNLOAD NOW!

Download or read book Capital Controls and Capital Flows in Emerging Economies written by Sebastian Edwards and published by University of Chicago Press. This book was released on 2009-02-15 with total page 699 pages. Available in PDF, EPUB and Kindle. Book excerpt: Some scholars argue that the free movement of capital across borders enhances welfare; others claim it represents a clear peril, especially for emerging nations. In Capital Controls and Capital Flows in Emerging Economies, an esteemed group of contributors examines both the advantages and the pitfalls of restricting capital mobility in these emerging nations. In the aftermath of the East Asian currency crises of 1997, the authors consider mechanisms that eight countries have used to control capital inflows and evaluate their effectiveness in altering the maturity of the resulting external debt and reducing macroeconomic vulnerability. This volume is essential reading for all those interested in emerging nations and the costs and benefits of restricting international capital flows.