A global equilibrium model of sudden stops and external liquidity management
Our rough guess is there are 13,250 words in this book.
At a pace averaging 250 words per minute, this book will take 0 hours and 53 minutes to read. With a half hour per day, this will take 2 days to read.
How long will it take you?
This book will take an estimated to read at a reading speed averaging words per minute. With 30 minutes per day, this will take to read.
Enter your reading speedYou can take one of our WPM reading speed tests to find your reading speed.
Create a free account to track your reading progress, build your reading list, and set reading goals.
Author
Contributions
- Panageas, Stavros - Contributor
- Massachusetts Institute of Technology. Dept. of Economics - Contributor
Publication
2007 - Massachusetts Institute of Technology, Dept. of Economics, Cambridge, MA, Massachusetts
Language
English
Word Count
13,250 words, Guess
Page Count
53 pages
Identifiers
- Internet Archiveglobalequilibriu00caba
- OCLC Control Number252875691
- Open LibraryOL24643554M
Description
Emerging market economies, which have much of their growth ahead of them, either run or should run persistent current account deficits in order to smooth consumption intertemporally. The counterpart of these deficits is their dependence on capital inflows, which can suddenly stop. We make two contributions in this paper: First, we develop a quantitative global-equilibrium model of sudden stops. Second, we use this structure to discuss practical mechanisms to insure emerging markets against sudden stops, ranging from conventional non-contingent reserves accumulation to more sophisticated contingent instrument strategies. Depending on the source of sudden stops, their correlation with world events, and the quality of the hedging instrument available, the gains from these strategies can represent a substantial improvement over existing practices. Keywords: Capital flows, sudden stops, reserves, international liquidity management, world, capital markets, swaps, insurance, hedging, options, hidden states, Bayesian methods. JEL Classifications: E2, E3, F3, F4, G0, C1.
Subjects
Series Statement
- Working paper series / Massachusetts Institute of Technology, Dept. of Economics -- working paper 08-05
- Working paper (Massachusetts Institute of Technology. Dept. of Economics) -- no. 08-05.
Reader Reviews
No reviews yet for this book.
Be the first to share your thoughts!