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2 edition of International and domestic collateral constraints in a model of emerging market crises found in the catalog.

International and domestic collateral constraints in a model of emerging market crises

Ricardo J. Caballero

International and domestic collateral constraints in a model of emerging market crises

by Ricardo J. Caballero

  • 273 Want to read
  • 2 Currently reading

Published by National Bureau of Economic Research in Cambridge, MA .
Written in English

    Subjects:
  • Financial crises -- Developing countries -- Econometric models.,
  • Loans, Foreign -- Developing countries -- Econometric models.

  • Edition Notes

    StatementRicardo J. Caballero, Arvind Krishnamurthy.
    GenreEconometric models.
    SeriesNBER working paper series -- no. 7971, Working paper series (National Bureau of Economic Research) -- working paper no. 7971.
    ContributionsKrishnamurthy, Arvind., National Bureau of Economic Research.
    The Physical Object
    Pagination34 p. :
    Number of Pages34
    ID Numbers
    Open LibraryOL22409857M

    We develop a model in which financial crises in emerging markets may occur when domestic banks are internationally illiquid. Runs on domestic deposits may interact with foreign creditor panics, depending on the maturity of the foreign debt and the possibility of international default. Financial liberalization and. In the months or years leading up to each of the crises, capital inflows to emerging markets surged (see chart). Able to get financing in the international markets on increasingly favorable terms, a number of developing countries built up massive sovereign and private debt denominated in foreign currencies—much of it unhedged.

    Standard theoretical models would predict that a depreciation generates an increase in net ex-ports. However, recent emerging market crises, accompanied by sharp exchange rate depreciations, have often been followed by a fall or a stagnation of exports. This paper provides a simple the-. This paper provides an introduction to the new economics of prudential capital controls in emerging economies. This literature is based on the notion that there are externalities associated with financial crises because individual market participants do not internalize their contribution to aggregate financial instability. We describe financial crises as situations in which an emerging economy.

    In the model, the collateral constraint limits private agents not to borrow more than a fraction of the market value of their collateral assets, which take the form of an asset in fixed aggregate supply (e.g. land). credit externality at work in the model of emerging markets crises of Mendoza (), in. the tightening of the external financial constraints for the private firms. Indeed, international capital market has become an important source of funds for the emerging markets’ private sector, contributing over 30% of total net capital inflows to emerging markets.1 Now about 25% of emerging.


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International and domestic collateral constraints in a model of emerging market crises by Ricardo J. Caballero Download PDF EPUB FB2

We build a model of emerging markets crises which features two types of collateral constraints. Firms in a domestic economy have limited borrowing capacity from international investors.

They also have limited borrowing capacity with respect to each by: We build a model of emerging markets crises which features two types of collateral constraints. Firms in a domestic economy have limited borrowing capacity from international investors.

They also have limited borrowing capacity with respect to each other. We study how the presence of and changes in these collateral constraints affect financial and real by: HBM iDEWEY MassachusettsInstituteofTechnology DepartmentofEconomics WorkingPaperSeries INTERNATIONALANDDOMESTIC COLLATERALCONSTRAINTSINAMODELOF.

Request PDF | On Jan 1,Ricardo J. Caballero and others published International and Domestic Collateral Constraints in a Model of Emerging Market Crises | Find, read and cite all the. International and Domestic Collateral Constraint in a Model of Emerging Market Crises Article in Journal of Monetary Economics 48(3) November with 60 Reads How we measure 'reads'.

We build a model of emerging markets crises which features two types of collateral constraints. Firms in a domestic economy have limited borrowing capacity from international investors.

They also have limited borrowing capacity with respect to each other. We study how the presence and changes in these collateral constraints affect financial and real variables.

An illustration of an open book. Books. An illustration of two cells of a film strip. Video An illustration of an audio speaker. International and domestic collateral constraints in a model of emerging market crises Item Preview remove-circle Share or Embed This Item.

International and Domestic Collateral Constraints in a Model of Emerging Market Crises We build a model of emerging markets crises which features two types of collateral constraints. Firms in a domestic economy have limited borrowing capacity from international investors.

They also have limited borrowing capacity with respect to each other. International and domestic collateral constraints in a model of emerging market crises.

Ricardo Caballero and Arvind Krishnamurthy. Journal of Monetary Economics,vol. 48, issue 3, Date: References: View references in EconPapers View complete reference list from CitEc Citations: View citations in EconPapers () Track citations by RSS feed.

International and Domestic Collateral Constraints in a Model of Emerging Market Crises MIT Dept. of Economics Working Paper No. Number of pages: 36 Posted: 05 Oct Download PDF: Sorry, we are unable to provide the full text but you may find it at the following location(s): (external link).

International and domestic collateral constraints in a model of emerging market crises. Journal of Monetary Economics48, – Cagan, P. Monetary dynamics of hyperinflation. International and domestic collateral constraints in a model of emerging market crises.

Cambridge, MA.: National Bureau of Economic Research, © (OCoLC) Material Type: Internet resource: Document Type: Book, Internet Resource: All Authors / Contributors: Ricardo J Caballero; Arvind Krishnamurthy; National Bureau of Economic Research.

Get this from a library. International and domestic collateral constraints in a model of emerging market crises. [Ricardo J Caballero; Arvind Krishnamurthy; National Bureau of Economic Research.] -- Abstract: We build a model of emerging markets crises which features two types of collateral constraints.

Firms in a domestic economy have limited borrowing capacity from international. trading assets with domestic agents, and a collateral constraint limits external debt to a fraction of the market value of domestic equity holdings.

When this constraint does not bind, standard productivity shocks cause typical real-business-cycle effects. When it. International and domestic collateral constraints in a model of emerging market crises. By Ricardo J. Caballero and Arvind Krishnamurthy.

Abstract. September Septem Added t. Publisher: Cambridge, MA: Massachusetts Institute of Technology, Dept. of Economics. Year: OAI. “ International and Domestic Collateral Constraints in a Model of Emerging Market Crises.” Journal of Monetary Economics 48 (3)–48 Calomiris, Charles W., and Powell, Andrew.

limited domestic collateral and the international collateral constraint, in a dynamic setting, causes firms to undervalue international collateral. That is, firms systematically take actions that leave them with too little international collateral during crises, exacerbating the effects of.

International and Domestic Collateral Constraints in a Model of Emerging Market Crises Ricardo Caballero, Arvind Krishnamurthy NBER Working Paper The Credit Crunch in East Asia: What can Bank Excess Liquid Assets Tell us.

P.R. Agenor, J. Aizenman, A. Hoffmaister NBER Working Paper   International and Domestic Collateral Constraints in a Model of Emerging Market Crises Arvind Krishnamurthy, Ricardo J. Caballero. Journal of Monetary Economics. DecemberVol.

48, Issue 3, Pages. International and Domestic Collateral Constraints in a Model of Emerging Market Crises NBER Working Paper No. w Number of pages: 36 Posted: 22 Oct Last Revised: 25 Jun Caballero, Ricardo J.

& Krishnamurthy, Arvind, " International and domestic collateral constraints in a model of emerging market crises," Journal of Monetary Economics, Elsevier, vol. 48 (3), pagesDecember. Ricardo Caballero & Arvind Krishnamurthy, 2The importance of international collateral constraints for emerging markets was first identified in the sovereign debt literature (see, e.g., Eaton and Gersovitz or Bulow and Rogoff ).

3Though in very different terms, Dornbusch () also expresses his uneasi-ness about the assumption that emerging economies with access to monetary.