@misc{10065,
title = {Systemic Sudden Stops: The Relevance of Balance-Sheet Effects and Financial Integration},
author = {Calvo, Guillermo A. and Izquierdo, Alejandro and Mejía, Luis Fernando},
year = {2011},
doi = {10.18235/0010895},
abstract = {Using a sample of 110 developed and developing countries for the period 1990-2004, this paper analyzes the characteristics of systemic sudden stops (3S) in capital flows and the relevance of balance-sheet effects in the likelihood of their materialization. A small supply of tradable goods relative to their domestic absorption?a proxy for potential changes in the real exchange rate?and large foreign-exchange denominated debts towards the domestic banking system are claimed to be key determinants of the probability of 3S, producing a balancesheet effect with non-linear impacts on the probability of 3S. While financial integration is up to a point associated with a higher likelihood of 3S, beyond that point financial integration is associated with a lower likelihood of 3S.},
url = {https://doi.org/10.18235/0010895}
}