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dc.titleSystemic Sudden Stops: The Relevance of Balance-Sheet Effects and Financial Integration
dc.contributor.authorCalvo, Guillermo A.
dc.contributor.authorIzquierdo, Alejandro
dc.contributor.authorMejía, Luis Fernando
dc.contributor.orgunitDepartment of Research and Chief Economist
dc.coverageThe Caribbean
dc.coverageCentral America
dc.coverageSouth America
dc.date.available2011-02-07T00:00:00
dc.date.issue2008-07-01T00:00:00
dc.description.abstractUsing 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.
dc.identifier.doihttp://dx.doi.org/10.18235/0010895
dc.identifier.urlhttps://publications.iadb.org/publications/english/document/Systemic-Sudden-Stops-The-Relevance-of-Balance-Sheet-Effects-and-Financial-Integration.pdf
dc.language.isoen
dc.mediumAdobe PDF
dc.publisherInter-American Development Bank
dc.subjectFinancial Crisis and Structural Adjustement
dc.subjectFinancial Sector
dc.subject.jelcodeF31 - Foreign Exchange
dc.subject.jelcodeF32 - Current Account Adjustment • Short-Term Capital Movements
dc.subject.jelcodeF34 - International Lending and Debt Problems
dc.subject.jelcodeF41 - Open Economy Macroeconomics
dc.subject.keywordsWP-637
dc.typeWorking Papers
idb.identifier.pubnumberWorking Papers
idb.operationRG-N2643
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